Nigerian industrialist Aliko Dangote is targeting October 2026 for the groundbreaking of a major oil refinery in Lamu, marking what could become one of the largest private sector investments ever undertaken in Kenya. Recent reports put the proposed investment at roughly KSh2.2 trillion, with the refinery designed to process about 700,000 barrels of crude oil per day.

The refinery would be even larger in capacity than Dangote’s flagship 650,000-barrel-per-day refinery in Lagos, Nigeria. Dangote Group has said the Kenyan facility is intended to serve not only Kenya but the wider East African market, supplying petroleum products to countries that currently depend heavily on imported refined fuel.

Lamu’s strategic location is a major advantage. The refinery would have access to the deep-water Lamu Port and could complement the wider LAPSSET Corridor, strengthening Kenya’s position as a regional logistics, energy and industrial hub. Reports indicate the development could also generate tens of thousands of jobs across construction, engineering, logistics and supporting industries.

President William Ruto’s administration has been pushing for greater African investment in major infrastructure and stronger regional cooperation on energy security.

If successfully delivered, the Lamu refinery could significantly expand Kenya’s petroleum-processing capacity, reduce dependence on distant refining markets and establish the country as a major supplier of refined petroleum products across East Africa.