Dangote Adds Lamu to List of Potential Sites for East Africa Oil Refinery
The inclusion of Lamu, a UNESCO World Heritage site renowned for its centuries-old Swahili culture and strategic Indian Ocean access, signals Kenya’s growing prominence in the race to host what could become East Africa’s largest petroleum refining facility.
The proposed refinery, expected to mirror Dangote’s 650,000-barrel-per-day refinery in Lagos, Nigeria, is projected to transform the region’s energy sector and reduce dependence on imported refined petroleum products.
Lamu now joins Mombasa as Kenya’s second potential location under consideration, effectively narrowing the focus to a 370-kilometre stretch along the country’s coastline.
When the project was first publicly discussed in April, the Tanzanian port city of Tanga had emerged as the leading proposed site. However, Dangote later indicated that Kenya may possess stronger logistical and commercial advantages.
“I am leaning more towards Mombasa because of its port infrastructure and deeper access for shipping,” Dangote reportedly said during an interview on May 10.
The billionaire businessman further pointed to Kenya’s higher consumption of refined petroleum products compared to neighbouring Tanzania, arguing that market demand remains a critical factor in determining the final location.
Despite his growing interest in Kenya, Dangote has continued diplomatic engagements across the region. On May 16, he held talks with Tanzanian President Samia Suluhu Hassan in Dar es Salaam, where he reaffirmed his commitment to investments in Tanzania regardless of where the refinery is ultimately established.
Meanwhile, Uganda continues pursuing its long-delayed refinery project in Hoima, a 60,000-barrel-per-day facility that has remained under development for more than a decade amid financing and implementation challenges.
According to reports, Dangote is expected to finance the majority of the project privately, further cementing his reputation as one of Africa’s most influential industrial investors.
“The final decision on where the refinery will be established in Kenya rests with President William Ruto,” Dangote reportedly stated, underlining the importance of government backing and bilateral cooperation.
President William Ruto has in recent months intensified efforts to attract foreign investment into Kenya’s manufacturing, logistics, and energy sectors as part of a broader economic transformation agenda.
Supporters of the project say it could lower fuel import costs, improve regional fuel security, create thousands of jobs, and stimulate infrastructure growth around whichever location is selected.
However, environmental concerns are already beginning to emerge, particularly over the possible selection of Lamu, given its globally recognised heritage status and delicate marine ecosystem.
Even so, the growing interest from Dangote underscores East Africa’s rising importance in Africa’s energy landscape as governments seek long-term solutions to volatile fuel prices, supply disruptions, and increasing demand for petroleum products.
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Dangote Adds Lamu to List of Potential Sites for East Africa Oil Refinery
