Dangote to break ground on $17bn Lamu refinery by end of September 2026
By Aboki Forex —
Dangote Group will break ground on a $17 billion oil refinery in Lamu, Kenya, before the end of September 2026, with completion expected within three years of construction starting. Aliko Dangote, president of Dangote Industries Limited and Africa's richest man, announced the plan on Monday, September 14, 2026, at the opening of the Dangote Petroleum Refinery and Petrochemicals FZE initial public offering in Lagos.
The Lamu project will be Dangote's first major refining project in East Africa and forms part of a wider push into the region, where governments have shown interest in taking equity stakes. It will sit on Kenya's coast and complement the group's existing operations at the Dangote Refinery in Lekki, Lagos, which processes 650,000 barrels of crude oil per day and is currently Africa's largest single-train refinery.
Three-year construction target
Dangote said the Kenyan refinery could be completed in three years once work begins. Earlier estimates had put the construction timeline at around five years. The project is valued at $17 billion, making it one of the group's biggest moves outside Nigeria.
Dangote framed the Kenyan project as part of a deliberate push to capitalise on untapped opportunities across the continent. He said: "There's a lot of value in Africa. Africa is like a scratch card; unless you scratch it, you will not see the use of it. The opportunities are immense."
East African equity interest
The Lamu refinery has already drawn interest from several governments in the region. Kenya's President William Ruto's economic adviser, David Ndii, previously indicated that Kenya was considering a 10% stake in the project. Ethiopia and Rwanda have also shown interest, with Dangote having offered East African countries a combined 30% equity stake in the facility.
Beyond Kenya, Dangote announced plans for a 2,650-kilometre pipeline stretching from Namibia through Botswana to South Africa. A separate pipeline project heading towards Zimbabwe is also in the works, with construction expected to begin next month.
IPO and investor interest
The announcements came as the Dangote Petroleum Refinery and Petrochemicals FZE IPO opened. The offer is targeting about $1.6 billion in fresh capital and values the refinery business at close to $50 billion. It has generated significant interest among Nigerian retail investors, with banks, stockbrokers and fintech platforms competing to process subscriptions.
The twin developments, a new East African refinery and the southern Africa pipeline network, point to Dangote Group's ambition to build an integrated energy business that spans multiple African regions. For Nigerian investors, the listing process and the company's expansion plans keep attention on one of the country's biggest private-sector plays in energy and capital markets.