Africa’s richest man, Aliko Dangote, was set on Wednesday to break ground on a $16 billion refinery in Kenya, a project he says will move the continent closer to fuel self-sufficiency.
The Dangote Group founder, who built Africa’s largest oil refinery in his native Nigeria, said the new facility will process 700,000 barrels per day, a capacity larger than any refinery in Europe.
The plant is located in Lamu, on Kenya’s Indian Ocean coast, where the government is also developing a major port. Dangote said the site beat other options, including Tanzania and the Kenyan city of Mombasa, because of its “better, cleaner water”, “solid land” and deep sea area.
He added that the project will include a 1,000-megawatt power plant, with half of its output going to Kenya’s national grid.
Legal and environmental challenges
The project has drawn a lawsuit from a local community over land rights. A court ruling published on Monday allowed the ground-breaking to proceed, but the case remains ongoing. Greenpeace and other environmental groups have also raised concerns about its impact.
Speaking to reporters on Tuesday, Dangote dismissed the objections. “There’s actually no problem with these sort of cases… There are people who don’t want the development of Africa,” he said.
Push for self-sufficiency
Dangote described the refinery as a key step in reducing Africa’s dependence on imported fuel and foreign expertise.
“By 2030, the majority of African countries will be self-sufficient (in fuel). It does not matter where it is refined, but it should be in the African continent, on the soil of Africa,” he said.
He also urged African countries to rely on local capacity for major projects. “If anybody is doing a big project going forward, you don’t have to go and bring Chinese or Indians and build it for you,” he said.
Crude supply questions
Questions have been raised over where the refinery will get its crude, since East African countries are only beginning to discover and develop significant reserves.
Dangote said the plant will source crude from several places, including the Middle East and the United States, and will be ready as Kenya, Tanzania and Mozambique increase their own production.
Pointing to US President Donald Trump’s threats to halt diesel exports, he said Africa cannot afford to wait. “Are we going to wait until (Africa has) one quarter of the world’s population before we start thinking of what to do? We have to start addressing that issue today,” he said.
He stressed that the refinery would meet only a fraction of the demand Africa’s growing economy will generate. “When you talk about 700,000 barrels per day, it’s actually small. For the region, it’s a big refinery, it’s a big investment, but it is a start-up,” he said.
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