Dangote offers Kenya, Ethiopia, Rwanda stake in $17bn East Africa refinery

Aliko Dangote is moving his refinery expansion into East Africa with a proposed $17 billion plant in Kenya, and three countries are being offered a direct equity stake. Kenya has been offered 10 per cent, while Ethiopia and Rwanda have also expressed interest, according to David Ndii, economic adviser to Kenyan President William Ruto.

Speaking at a capital markets forum in Nairobi, Ndii said Kenya's stake could be worth about $500 million. The combined contribution from the three East African countries could reach roughly $1.5 billion. He said Dangote was also prepared to support participating countries that may struggle to commit to buying refined petroleum products from the refinery.

Project moves from Tanzania to Kenya

The refinery was initially planned for Tanga, Tanzania, but Dangote shifted the project to Lamu on Kenya's coast after reviewing commercial and technical factors. The facility, including associated infrastructure, is expected to cost about $17 billion and could take roughly five years to complete. It would mirror the scale of Dangote's massive refinery in Lagos and could transform the supply of refined petroleum products across East Africa.

Ndii said the project has already drawn interest from private investors in the region. He noted that Tanzanian businessman Mohammed Dewji had earlier indicated a willingness to invest $100 million.

Broader expansion and capital raising

The Kenya project forms part of Dangote's strategy to expand his refining footprint beyond Nigeria while tapping capital markets for future growth. In Nigeria, the Dangote Petroleum Refinery is targeting an increase in capacity from its current 700,000 barrels per day to 1.4 million barrels per day. The company is also pursuing plans to access additional capital through a potential listing.

Ndii referenced financing arrangements involving a reported $1 billion underwriting programme. That includes a completed $600 million private placement and a further $400 million commitment, subject to regulatory and market conditions.

What it means for Nigeria

If the Kenyan project proceeds, the proposed equity structure would give Kenya, Ethiopia and Rwanda direct ownership in a major energy project while strengthening their access to refined fuel supplies. For Nigeria, it signals that Dangote's refining ambitions are no longer limited to the domestic market, and the company is increasingly positioning itself as a continental player, competing for buyers beyond African shores.