Published: · Region: Africa · Category: markets

Dangote and Ruto Break Ground on $16 Billion Refinery in Kenya’s Lamu County

Aliko Dangote and Kenyan President William Ruto have launched a $16 billion oil refinery and petrochemicals special economic zone in Mokowe, Lamu County, planned to process up to 700,000 barrels of crude a day within about 40 months.

Kenya has taken a major step toward building one of East Africa’s largest energy projects, breaking ground on a vast refinery and petrochemicals complex on the coast.

On 1 October, Dangote Group chief executive Aliko Dangote and Kenyan President William Ruto launched construction of the Dangote East Africa Petroleum and Petrochemicals Special Economic Zone in Mokowe, Lamu County. The planned facility is expected to process up to 700,000 barrels of crude oil per day.

Project backers say the complex will cost around $16 billion to build and is slated for completion within about 40 months. They also expect it to create jobs, though detailed employment figures have not been publicly specified.

The refinery and associated petrochemical facilities are intended to anchor a special economic zone, a designated area where investors can receive targeted incentives and streamlined regulation. For Kenya, that combination is meant to draw in related industries and turn Lamu into a hub for processing and exporting fuel and chemical products.

If it advances as planned, the project would significantly expand the region’s refining capacity and could change how crude and fuel move through East Africa. How financing is structured, how quickly construction proceeds, and what kinds of supporting infrastructure are built around the site will show whether it becomes a new center of gravity for the regional energy trade or remains a high‑profile aspiration.

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