The Lower Eastern Times Opening The Third Eye
Africa’s richest man, Aliko Dangote, has outlined plans for his group’s proposed refinery in Lamu, saying the facility will produce a variety of petroleum and industrial products for Kenya and the broader East African market.
Speaking on Citizen TV’s Explainer ahead of the refinery’s launch, Dangote said the facility is expected to produce jet fuel, diesel and petrol, while also providing raw materials for the plastics sector and other manufacturing industries.
Among the products to be manufactured will be polypropylene, which is widely used by plastic manufacturers, as well as base oil for industrial applications.
Dangote said the project would extend beyond petroleum production, with the group also exploring ways to increase electricity generation as part of a broader industrialisation strategy.
“We are not only supplying jet fuel, diesel, and gasoline, which is PMS that you use in your car. We are also supplying the plastic industries,” Dangote said.
He added that the group plans to manufacture polypropylene and base oil and is exploring opportunities to support increased power generation in Kenya.
According to Dangote, the refinery forms part of a wider investment programme through which his group plans to invest approximately $16 billion in Kenya.
He described the proposed investment as the largest investment by an African investor on the continent, noting that Kenya remains one of the group’s key markets outside Nigeria.
“Just this funding alone is $16 billion, and is the largest investment that an African invests in Africa,” he said.
Dangote also explained why Lamu was selected as the preferred location after Mombasa and Tanzania’s Tanga had initially been considered.
He said Tanga was initially attractive because of its connection to the pipeline transporting Ugandan crude. However, the group later determined that Lamu offered better conditions for the project.
According to Dangote, Lamu has adequate water resources, sufficient sea depth and enough land to accommodate the planned development.
He said the refinery could form the foundation of a much larger industrial complex, potentially generating substantial economic activity in the area once completed.
“When you go to Lamu, you will see that it is totally different. It will have more activities than any industrial centre in Kenya,” he said.
Dangote also discussed the refinery’s potential sources of crude oil. He noted that Kenya and Uganda are expected to begin producing crude, while other East African countries could also become potential suppliers as their oil industries develop.
He said this would give the refinery access to crude from within the region as production increases.
“Kenya will start producing crude very soon. Uganda is going to start very soon, and other neighbouring countries too in East Africa will start producing their own crude,” he said.
The proposed refinery is expected to target markets beyond Kenya, with Dangote saying the group intends to supply petroleum and industrial products across East Africa.
He also connected the project to broader efforts to address Africa’s electricity shortage, which he identified as one of the challenges limiting industrial development on the continent.
Dangote said he was engaging leaders in Kenya and other African countries on ways to mobilise resources for additional power-generation capacity.
He further revealed that the group plans to invest about $50 billion in various industries over the next four years, including projects focused on expanding electricity generation.
Dangote said the full scale of the planned development would become clearer as work progresses, adding that Lamu could experience significant economic activity within four to five years.
