Kenya has begun construction of the $16 billion Dangote East Africa Petroleum Refinery, a KSh2.2 trillion project expected to attract foreign investment, create jobs and strengthen energy security across East and Central Africa.
President William Ruto said the project would attract an additional $4 billion in foreign direct investment annually during its four-year construction period and create about 60,000 direct jobs, while supporting local skills development and industrial capacity.
Ruto, who presided over the groundbreaking ceremony alongside Dangote Group President Aliko Dangote, said the investment would help reduce Kenya’s reliance on petroleum imports and “bolster our foreign exchange” position.
The refinery will have a planned capacity of 700,000 barrels per day, making it the largest refinery in East and Central Africa and placing it among the larger refining projects globally.
Ruto said the facility would play a role in “strengthening regional energy security” while reducing the region’s exposure to imported petroleum products.
The project extends beyond petroleum refining, with plans for an integrated industrial complex comprising a 1,000MW power plant, a plastics factory and facilities for manufacturing fertilisers and chemicals.
According to Ruto, the development could boost the Kenyan economy by 12 per cent and accelerate the transformation of the Lamu Port South Sudan and Ethiopia Transport (LAPSSET) Corridor into a major industrial hub.
Dangote’s Kenyan investment extends its drive to build industrial capacity within Africa that can supply several markets. The project goes beyond fuel: refining will sit alongside power generation and the manufacture of plastics, fertiliser and chemicals, anchoring a broader industrial chain around the site.
The model could cut reliance on imported finished products and open new demand for local suppliers, logistics operators and manufacturers. It also strengthens Dangote’s hand in East Africa, where governments are working to expand domestic production and limit exposure to external supply chains.
The project therefore adds another major investment to Dangote’s strategy of scaling manufacturing across Africa, with the focus shifting from exporting raw materials and importing finished goods towards processing, manufacturing and retaining more value within the continent.
