Dangote offers East Africa 30% stake in $17B Kenyan oil refinery project
Aliko Dangote has offered East African countries a combined 30% equity stake in his proposed oil refinery to be built in Lamu, Kenya, valuing the regional share at about $1.5 billion. Kenya would take a 10% stake worth roughly $500 million, while Ethiopia and Rwanda have also expressed interest in participating. The refinery project, estimated to cost $17 billion and take five years to complete, would give East African investors direct equity in a major energy infrastructure project and potential access to refined petroleum products for their markets. Dangote said he would backstop the investment if any participating country cannot commit as a crude off‑taker, ensuring the $1.5 billion regional allocation can be met. The project marks a major expansion of Dangote’s refining footprint beyond Nigeria, where his Lagos refinery already operates at 700,000 barrels per day and a planned IPO has secured a $1 billion underwriting programme. Will East African investors see this as a strategic opportunity to gain exposure to a multi‑billion‑dollar energy asset, or will concerns over the long timeline and execution risks keep them on the sidelines?