Dangote Pushes Kenya Refinery Start to October, Cuts Cost to $16bn
By Aboki Forex —
Aliko Dangote has set a fresh October deadline to begin construction of a 700,000 barrels-per-day refinery in Kenya. The Dangote Group President says groundbreaking will happen by October, with construction to follow soon after.
Speaking with the BBC, Dangote said the project would strengthen fuel supply across East Africa and reduce dependence on imported petroleum products.
October groundbreaking, four-year timeline
“I think, by October, we will be doing something groundbreaking. Once we break ground, we will start the construction very soon,” Dangote said.
He expects the refinery to be completed in less than four years once construction begins. A faster build would lower the overall cost of the project.
The estimated investment has been revised downward to about $16 billion from an earlier projection of $17 billion. Dangote said the lower cost reflects lessons from building his 650,000 barrels-per-day refinery in Lagos, Nigeria.
“It will cost less because this one will be faster. In terms of financing costs, it will be less, and also we are wiser as a company than the time we built the refinery in Lagos,” Dangote said.
East African energy project
The proposed refinery is expected to serve a market much larger than Kenya. Dangote described it as an East African energy project.
“The refinery in East Africa makes a lot of sense because it is not only for Kenya and that is why we are calling it the East African refinery,” he said.
If completed as proposed, the facility could significantly increase refining capacity in the region and provide an additional source of refined petroleum products for East African markets.
Financing: 30% equity, 70% debt
Financing remains a critical part of the multibillion-dollar project. Dangote said the company plans to use 30% equity and 70% debt.
Despite the scale of the investment, he expressed confidence in raising the funds. “We don’t have any problem raising the money,” he said.
Beyond commercial opportunity, Dangote said the project aims to strengthen energy security across Africa. Increased domestic refining capacity would reduce African countries’ exposure to disruptions in international fuel markets.
What it means for Nigeria
Back home, the Federal Government has agreed to provide foreign exchange to the Dangote Petroleum Refinery in exchange for naira generated from petrol sales. That arrangement, confirmed by a company official on Friday, July 31, 2026, is part of efforts to sustain the naira-for-crude deal.