Dangote Industries Limited (DIL) has revealed that the East African oil refinery set to be built in Kenya will refine 700,000 barrels of oil daily, marking a major step in its strategy to expand its footprint across Africa and strengthen fuel supply in the East African region.
Dangote Group, in a statement, said the proposed Kenyan refinery is expected to serve East African markets as the company seeks to deepen its presence in the continent’s energy sector.
The announcement was made by Dangote Industries’ Group Vice President (GVP) for Oil and Gas, Devakumar Edwin, during a visit by a delegation from the Republic of the Congo’s national oil company to the Dangote Petroleum Refinery in Lagos on July 1.
According to the GVP, 1.4 million barrels will be refined in Nigeria, while 700,000 barrels will be refined in Kenya to serve the East African nation. The planned refinery forms part of the group’s expansion strategy, which will increase its combined refining capacity to 2.1 million barrels per day.
The move comes months after the president of the Dangote Group, Aliko Dangote, disclosed plans to have a new African oil refinery in East Africa. The refinery was initially destined for Tanga port in Tanzania, but Dangote later shifted his focus to Kenya, particularly eyeing Mombasa and Lamu ports.
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The shift was primarily driven by maritime practicality, superior infrastructure, and stronger market demand, according to the Nigerian entrepreneur. Dangote later added the port of Lamu as one of the sites that could host the multibillion-dollar factory, but the team is working to define the most suitable location.
According to Kenyan President William Ruto, the governments of the region would also invest in the planned refinery, with Kenya designating seed capital of Ksh 21.5 billion towards the project.
The Ksh 2.5 trillion oil refinery will serve Kenya, Tanzania, Uganda, South Sudan, and other East African regions and is intended to reduce East Africa’s reliance on imported refined fuel and cushion the region from global supply disruptions.