Africa’s richest man, Aliko Dangote, on Wednesday broke ground on a $16 billion oil refinery in Kenya, describing the project as a new chapter in the continent’s industrial development.
The refinery, to be built at the port of Lamu, will have a processing capacity of 700,000 barrels per day, making it larger than any refinery currently operating in Europe.
Dangote, who built Africa’s largest refinery in his native Nigeria, said the Kenyan project would help strengthen Africa’s capacity to process its own natural resources and reduce dependence on imported refined petroleum products.
“This is Africa coming together to build Africa. Today we are not simply breaking ground for a refinery, we’re breaking ground for a new chapter in Africa’s industrial journey,” Dangote said at the ceremony.
Kenyan President William Ruto attended the event alongside regional leaders, including Ethiopian Prime Minister Abiy Ahmed and Ugandan President Yoweri Museveni.
Ruto described Lamu as an important centre for Kenya’s future development and assured residents that concerns over land rights and the environment would be addressed.
“Lamu will be the epicentre of the development of our country,” Ruto said, adding that land and environmental concerns “will be handled lawfully and fairly”.
The project is expected to be completed within 30 to 40 months but has already faced legal and environmental challenges.
A local community filed a lawsuit over land rights, while Greenpeace and other environmental groups have raised concerns about the potential impact on the area.
Lamu is a major tourist destination and home to the oldest Swahili settlement, dating back to the 12th century and recognised as a UNESCO World Heritage site.
A court ruling published on Monday cleared the way for the groundbreaking ceremony, although the underlying legal case remains ongoing.
Dangote dismissed the litigation, saying his group was prepared to face legal challenges to the project.
The refinery is also emerging amid growing competition in East Africa’s energy sector. Uganda and Tanzania announced plans in August for a rival $20 billion refinery and energy hub at the Tanzanian port of Tanga, although details of the project remain limited.
Uganda is preparing to begin oil production and has nearly completed a pipeline linking its oilfields to Tanzania’s coast in partnership with French energy company TotalEnergies.
As a result, much of the crude processed at Dangote’s Kenyan refinery will initially have to be imported by sea.
Dangote said the refinery would source crude from the Middle East, the United States and other regions, while remaining positioned to process more African crude as countries such as Kenya and Mozambique expand production.
He said Lamu was selected over Tanzania because of its deep-water port and suitable land.
The project will also include a 1,000-megawatt power plant, with half of the electricity expected to be supplied to Kenya’s national grid.
Dangote said the refinery would support efforts to retain more value and economic opportunities within Africa.
“For too long, our continent has actually been rich in resources but poor in value creation and addition. We have exported crude oil and imported refined products,” he said.
“Such practice only leads to us exporting our jobs and opportunities that should remain on the continent and lead us into importing poverty into our nations.”
Ruto cited figures showing that Africa produced about 6.8 million barrels of crude oil per day in 2024 while consuming 4.5 million barrels per day of refined petroleum products.
He said the figures demonstrated the continent’s large fuel market while highlighting the economic value currently being captured by overseas refiners.
