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Kenya is set to host one of Africa’s biggest industrial investments as President William Ruto leads the groundbreaking of the KSh2 trillion ($16 billion) Dangote East Africa Refinery in Lamu on Wednesday, September 30, 2026.

The planned refinery at Lamu Port is designed to process 700,000 barrels of crude oil per day and is expected to be completed within about three years. Once operational, it will supply refined petroleum products to Kenya and markets across East and Central Africa.

The project is expected to produce more than 100 million litres of petrol, diesel and aviation fuel daily, potentially reducing the region’s dependence on imported refined petroleum products.

A major regional energy project

Dangote Group Chairman Aliko Dangote has described the refinery as a gateway for wider investment in Kenya and the region.

“The refinery is like the gate. Once you open and have the refinery, you’ll be shocked at how many people will know to come and invest in Kenya.”

The proposed facility is expected to serve markets including Kenya, Ethiopia, South Sudan, Uganda, Tanzania, Rwanda, Burundi and the Democratic Republic of Congo.

The project is also expected to support the development of a wider industrial ecosystem around Lamu, including petrochemical-related industries and other businesses that require reliable energy supplies.

Construction equipment arrives in Lamu

Preparations for construction have already begun at Lamu Port.

The port received 2,930 metric tonnes of heavy construction equipment aboard the vessel MV Da Yang, which docked on September 26 ahead of the groundbreaking ceremony.

The arrival of the machinery marks one of the clearest signs yet that the project is moving from planning into construction.

1,000MW power plant

The refinery will also include a major power-generation component.

Dangote has said the Lamu project will have a 1,000-megawatt power plant, with about 500MW potentially available for sale to the Kenyan government.

The additional electricity is intended not only to support refinery operations but also to provide power for other industries expected to establish operations around the project.

President Ruto has said the refinery is expected to strengthen fuel security and reliability while supporting industrialisation and creating tens of thousands of jobs. Government and project officials have put the wider employment potential at more than 60,000 jobs.

How will the refinery get crude oil?

One of the key questions surrounding the project is the availability of crude oil.

Kenya is not currently a major commercial oil producer, although the government has indicated that domestic production is expected to resume later in 2026.

The project is therefore expected to source crude from regional and international suppliers rather than relying exclusively on Kenyan oil. Dangote has also pointed to international refining hubs such as Singapore, which imports crude despite not being a major oil producer.

The refinery is expected to be connected to offshore crude supplies through a 120-kilometre subsea system designed to move crude from ships to the facility.

Land dispute and environmental concerns

Despite the project’s scale, its development has faced opposition from residents in Lamu.

More than 130 residents have challenged the project in court, raising concerns over ancestral land, compensation, displacement and the destruction of property.

The Malindi Environment and Land Court has ordered parties to maintain the status quo on the disputed land until October 14, following a petition by residents seeking to stop development activities. The ruling does not prevent the scheduled groundbreaking ceremony, although it could affect some activities at the disputed site.

Environmental campaigners have also called for greater transparency around the project’s environmental impact assessment and the measures proposed to protect local communities and ecosystems.

Dangote has maintained that the refinery project will proceed despite the legal challenges.

Dangote’s biggest refining investment outside Nigeria

The Lamu refinery represents Dangote’s largest proposed refining investment outside Nigeria.

It follows the development of the 700,000-barrel-per-day Dangote refinery in Lagos, which has become one of Africa’s largest refining facilities.

Dangote is simultaneously pursuing an expansion of his Nigerian energy business. The Lagos refinery is targeting an increase in capacity to about 1.4 million barrels per day, while the company is also pursuing an IPO for the Nigerian refinery.

The Lamu project forms part of Dangote’s broader strategy of expanding industrial and energy investments across Africa.

A new industrial hub for East Africa?

When completed, the Lamu refinery would give East Africa a major new refining facility with the capacity to process 700,000 barrels of crude every day.

Beyond fuel production, the project is expected to attract investment into Lamu and surrounding regions, while creating demand for transport, logistics, manufacturing, energy and other supporting industries.

However, the project’s long-term impact will depend not only on construction but also on reliable crude supplies, infrastructure, financing, environmental safeguards and how land and community concerns are resolved.

For now, the September 30 groundbreaking marks the formal start of a project that could significantly reshape Kenya’s petroleum and industrial landscape.