NAIROBI, Kenya, Sep 30 – Nigerian billionaire Aliko Dangote says he was unfamiliar with Lamu before May this year, when his group was considering locations for its planned East African oil refinery.
Speaking during the groundbreaking ceremony for the Dangote East Africa Refinery in Lamu County, Dangote said the project was also among the fastest major developments by the group on the continent.
“Before May I did not know about Lamu…. Second fastest after fertilizer project in Ethiopia,” Dangote said.
The refinery is expected to have a processing capacity of 700,000 barrels of crude oil per day, making it the largest refinery in East Africa and the second-largest on the continent after Dangote’s refinery in Lagos, Nigeria.
Kenya’s Lamu was selected after the group considered locations in Tanzania, Uganda, Mozambique and Zanzibar, with its strategic location and commercial viability cited among the factors behind the decision.
Lamu’s access to the Indian Ocean is also expected to facilitate the importation of crude oil from neighbouring countries and international markets, while its infrastructure is being positioned to support large-scale industrial operations.
Dangote announced plans in April to expand his refining business into East Africa, with the Lamu facility expected to be modelled on his refinery in Nigeria.
The proposed refinery is expected to supply refined petroleum products to Kenya and neighbouring markets, including Uganda, Tanzania, South Sudan and the Democratic Republic of the Congo, reducing reliance on imported refined petroleum products.
The project is estimated to cost Sh2 trillion, down from an earlier estimate of Sh2.2 trillion. About 70 percent of the financing, equivalent to approximately Sh1.4 trillion, is expected to come through debt.
