Dangote to Begin Construction of Another Refinery by September 2026
- Dangote Group announced it will break ground on a $17 billion oil refinery in Lamu, Kenya, by the end of September 2026
- The Kenya project is part of a wider push into East Africa, where regional governments have expressed interest in taking an equity stake
- Dangote also revealed plans for a 2,650-kilometre pipeline running through southern Africa as part of the group's continental energy expansion
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Group plans to break ground on a $17 billion oil refinery in Kenya before the end of September, with the facility expected to be completed within three years of construction starting.
Aliko Dangote, president of Dangote Industries Limited and Africa's richest man, made the announcement on Monday, September 14, 2026, during the opening of the Dangote Petroleum Refinery and Petrochemicals FZE initial public offering in Lagos.
Source: UGC
The planned refinery will be built in Lamu on Kenya's coast, marking the group's first major refining project in East Africa.
Dangote's African energy expansion
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."
Beyond Kenya, the billionaire announced plans to build 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.
Earlier estimates had put the Kenyan refinery's construction timeline at around five years, but Dangote's latest comments suggest the project could be wrapped up in three years once work begins.
East African governments eye equity stakes
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.
The refinery would give Dangote a major foothold on Africa's eastern coast, complementing 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.
Source: Getty Images
Dangote Refinery IPO opens to investors
Earlier, Legit.ng reported that Dangote's announcement coincided with the launch of the Dangote Petroleum Refinery and Petrochemicals FZE IPO, which is targeting about $1.6 billion in fresh capital and values the refinery business at close to $50 billion.
The offer has generated significant interest among Nigerian retail investors, with banks, stockbrokers, and fintech platforms all 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.
Source: Legit.ng
