{"id":2000127645,"date":"2026-09-30T17:51:48","date_gmt":"2026-09-30T15:51:48","guid":{"rendered":"https:\/\/new.igihe.com\/english\/?p=2000127645"},"modified":"2026-09-30T18:04:25","modified_gmt":"2026-09-30T16:04:25","slug":"dangote-breaks-ground-on-16bn-refinery-to-cut-east-africas-fuel-import-bill","status":"publish","type":"post","link":"https:\/\/new.igihe.com\/english\/dangote-breaks-ground-on-16bn-refinery-to-cut-east-africas-fuel-import-bill\/","title":{"rendered":"Dangote breaks ground on $16bn refinery to cut East Africa\u2019s fuel import bill"},"content":{"rendered":"\n

The refinery, scheduled for completion in 2030, will have capacity to process 700,000 barrels of crude oil per day, matching the scale of Dangote\u2019s flagship refinery in Nigeria. It is expected to supply fuel to Kenya and other markets across the region while helping save foreign exchange spent on fuel imports.<\/p>\n\n\n\n

\u201cIt is an investment in energy security, industrialisation and regional integration,\u201d Ruto said at Wednesday\u2019s groundbreaking ceremony.<\/p>\n\n\n\n

The ceremony was attended by Presidents Yoweri Museveni (Uganda), Romuald Wadagni (Benin) and Jean-Lucien Savi de Tov\u00e9 (Togo), as well as Ethiopian Prime Minister Abiy Ahmed, alongside Dangote and senior Kenyan officials. Former Nigerian President Olusegun Obasanjo also attended, while Rwanda, Burundi, South Sudan and Tanzania were represented by official delegations.<\/p>\n\n\n\n

Dangote described the project as part of a broader push for African industrialisation, saying, \u201cWe are breaking ground for a new chapter in Africa\u2019s industrial journey to a brighter future.\u201d<\/p>\n\n\n\n

The refinery is Kenya\u2019s largest-ever foreign direct investment and is projected by Ruto to increase the country\u2019s annual GDP by 12%. It will form part of a wider industrial complex at Lamu, including a 1,000-megawatt power plant whose excess electricity will be sold to other customers.<\/p>\n\n\n\n

Dangote said the facility could help create energy self-sufficiency across a region stretching from Ethiopia to Mozambique by replacing imports of refined products. The refinery could also export jet fuel to European and British markets.<\/p>\n\n\n\n

Dangote has offered regional governments a combined 30% stake in the refinery. Kenya has been allocated 10%, while Rwanda and Ethiopia have expressed interest in acquiring stakes. Dangote has said governments investing in the project, including Rwanda, can spread payments for their equity over four years.<\/p>\n\n\n\n

Rwandan investors can also participate<\/strong><\/p>\n\n\n\n

Rwandan investors have already been given access to shares in Dangote\u2019s refinery business through its Nigerian IPO. The Rwanda Stock Exchange said eligible investors can participate in the primary-market offer through United Capital Financial Services PLC Rwanda, which is licensed by Rwanda\u2019s capital-market and banking authorities. Discussions on a possible cross-listing or dual listing on the Rwanda Stock Exchange are also ongoing.<\/p>\n\n\n\n

The Lamu project, however, faces legal and environmental challenges. On Tuesday, September 29, the Malindi Environment and Land Court ordered parties to maintain the status quo on the disputed land until October 14, when it will hear an application by 133 residents challenging the project over land rights, compensation and resettlement.<\/p>\n\n\n\n

Dangote has dismissed the legal challenge as an obstacle to the project, saying he is not afraid of the court case and that construction will proceed. \u201cWe are not really scared of people taking us to court,\u201d he said on Wednesday. \u201cAnybody who wants to cause trouble, we are ready for his trouble, and we will give him headache.<\/p>\n\n\n\n

Ruto has also backed the project, accusing unnamed individuals of supporting the refinery publicly while sponsoring court cases against it. He said the government would not allow investors to be frustrated by such actions.<\/p>\n\n\n\n

\n
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Nigerian billionaire Aliko Dangote and Kenyan President William Ruto on Wednesday broke ground on a $16 billion oil refinery in Lamu, Kenya, in a project designed to reduce East Africa\u2019s reliance on imported refined petroleum products.<\/figcaption><\/figure>\n\n\n\n
\"Dangote
The refinery, scheduled for completion in 2030, will have capacity to process 700,000 barrels of crude oil per day, matching the scale of Dangote\u2019s flagship refinery in Nigeria. <\/figcaption><\/figure>\n\n\n\n
\"\"<\/figure>\n\n\n\n
\"\"<\/figure>\n<\/figure>\n","protected":false},"excerpt":{"rendered":"

Nigerian billionaire Aliko Dangote and Kenyan President William Ruto on Wednesday broke ground on a $16 billion oil refinery in Lamu, Kenya, in a project designed to reduce East Africa\u2019s reliance on imported refined petroleum products.<\/p>\n","protected":false},"author":131,"featured_media":2000127649,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[151,69],"byline":[192],"hashtag":[],"class_list":["post-2000127645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-editors-choice","tag-homehighlights","byline-wycliffe-nyamasege"],"bylines":[{"id":192,"name":"Wycliffe Nyamasege","slug":"wycliffe-nyamasege","description":"","image":{"id":2000122456,"url":"https:\/\/cdn.igihe.com\/en\/2026\/08\/WhatsApp-Image-2026-08-14-at-11.58.47-AM.jpeg","title":"WhatsApp Image 2026-08-14 at 11.58.47 AM","mime_type":"image\/jpeg"},"user_id":131}],"contributors":[{"id":192,"name":"Wycliffe Nyamasege","slug":"wycliffe-nyamasege","description":"","image":{"id":2000122456,"url":"https:\/\/cdn.igihe.com\/en\/2026\/08\/WhatsApp-Image-2026-08-14-at-11.58.47-AM.jpeg","title":"WhatsApp Image 2026-08-14 at 11.58.47 AM","mime_type":"image\/jpeg"},"user_id":131}],"featured_image":{"id":2000127649,"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/HTeA5fsXEAEeeshnew.jpg","alt":"Dangote breaks ground on $16bn refinery to cut East Africa\u2019s fuel import bill","caption":"","mime_type":"image\/jpeg","width":1500,"height":1159,"sizes":{"thumbnail":{"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/HTeA5fsXEAEeeshnew.jpg","width":1500,"height":1159},"medium":{"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/HTeA5fsXEAEeeshnew.jpg","width":1500,"height":1159},"medium_large":{"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/HTeA5fsXEAEeeshnew.jpg","width":1500,"height":1159},"large":{"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/HTeA5fsXEAEeeshnew.jpg","width":1500,"height":1159},"full":{"url":"https:\/\/cdn.igihe.com\/en\/2026\/09\/HTeA5fsXEAEeeshnew.jpg","width":1500,"height":1159}}},"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/2000127645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=2000127645"}],"version-history":[{"count":2,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/2000127645\/revisions"}],"predecessor-version":[{"id":2000127651,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/2000127645\/revisions\/2000127651"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media\/2000127649"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=2000127645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=2000127645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=2000127645"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=2000127645"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=2000127645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}