Overview
- Dangote Group plans to begin construction of a 700,000-barrel-per-day refinery in Lamu, Kenya, on Wednesday, with the three-year build budgeted at $15–$16 billion.
- Kenyan President William Ruto toured Dangote’s Lagos refinery on Monday and expressed full government backing for the Lamu plan ahead of the groundbreaking.
- Engineers India Limited has been awarded a $450 million engineering, procurement and construction management consultancy role for the Lamu project.
- Dangote is seeking a mix of internal cash, proceeds from its ongoing Dangote Petroleum IPO and bond issuance to fund the build while offering up to 30% equity to East African states, with Kenya reportedly eyed for a 10% stake for about $500 million.
- Officials are also advancing regional logistics: talks are underway on a $660 million Ethiopia–Djibouti refined-product pipeline and a planned 1,000 MW Lamu power plant that would supply 500 MW to Kenya, while analysts warn the scheme faces feedstock, foreign-exchange and execution risks and direct competition from other East African refinery projects.