Nigerian industrialist Aliko Dangote has offered East African nations a combined 30% equity stake valued at $1.5 billion in his planned $17 billion, 700,000 barrels-per-day oil refinery in Lamu, Kenya.
According to Bloomberg, Kenya, Ethiopia, and Rwanda have expressed strong interest in the equity arrangement, with Nairobi evaluating a 10% holding worth approximately $500 million.
The facility aims to transform fuel security across East Africa, a region long reliant on costly imported refined petroleum that drains foreign exchange reserves and leaves domestic economies vulnerable to global shocks.
The project’s financing model relies on 70% debt and 30% total equity. Selling a 30% stake to host governments reduces Dangote’s capital outlay while securing guaranteed regional off-take commitments.
The remaining 70% equity portion will be funded via internal cash flows, debt instruments, and proceeds from an upcoming initial public offering (IPO) of the Dangote Petroleum Refinery entity.
Lamu was chosen over Tanga, Tanzania, after technical assessments showed superior logistics. The coastal site connects directly to the LAPSSET transport corridor, giving inland nations direct access.
Construction on the mega-refinery is targeted to take up to five years, using the same engineering blueprint as Dangote’s flagship complex in Nigeria.
Dangote is also seeking regulatory anti-dumping protections from East African governments to prevent cheap refined fuel imports from undercutting the plant’s local operations.
This expansion follows the successful operational scaling of Dangote’s 650,000 barrels-per-day Lagos refinery, which has hit 100% capacity and reshaped West Africa’s energy market.
