Nigerian billionaire Aliko Dangote has brought in Engineers India Ltd (EIL), an Indian government-owned engineering company, to provide services for his planned $15 billion to $16 billion oil refinery and petrochemical complex in Kenya. The project is planned for Lamu on Kenya’s coast.
EIL has signed a contract worth more than $450 million to oversee engineering, procurement and construction management for the project. The company was also involved in Dangote’s refinery project in Lagos, Nigeria.
The planned Kenyan refinery is expected to have a processing capacity of 700,000 barrels per day. Dangote plans to hold a groundbreaking ceremony later this month and aims to complete the facility by 2030.
The project is intended to strengthen fuel supply in Kenya and the wider East African region. Kenya currently has no commercial crude oil production, creating a challenge for securing the feedstock needed by the refinery. Potential sources include crude from South Sudan, Uganda and Kenya, although infrastructure and geopolitical issues could complicate supplies.
The refinery will be located within the Lamu Port-South Sudan-Ethiopia Transport corridor’s special economic zone. Existing infrastructure in the area remains limited, including the absence of operational oil storage terminals at Lamu Port.
Dangote plans to finance the project through a combination of internal cash flow, bonds and an initial public offering. East African countries including Rwanda, South Sudan, Tanzania and Uganda could also take equity stakes of up to a combined 30 per cent, although details of any agreements have not been finalised.
The project would be Dangote’s second major refinery development in Africa after the Lagos refinery, which began operations in Nigeria in 2024.
