Businessman Aliko Dangote has revealed how discussions that led to the proposed Dangote Lamu refinery began, saying the project was initially linked to Tanzania before the group settled on Kenya’s coastal town.
Dangote, the President of Dangote Group, said discussions about the proposed KSh2 trillion refinery started during a meeting in Nairobi.
Speaking in an exclusive interview with Citizen TV on Tuesday, Dangote said the meeting took place in April.
At the time, the group was considering Tanga in Tanzania as a potential location because of the planned pipeline connecting Uganda to the Tanzanian port.
How the Lamu refinery idea started
Dangote said he travelled to Nairobi after receiving an invitation from the Managing Director of the African Finance Corporation.
The corporation was hosting a conference in the Kenyan capital.
President William Ruto also wanted to meet Dangote during the visit to discuss the supply of fertiliser.
That meeting eventually opened discussions around the refinery project.
“The MD of the African Finance Corporation was trying to invite me to Nairobi because they had a conference and wanted me to participate. The President also wanted to see me to discuss the supply of fertiliser. That is how it all started,” Dangote said.
He said the discussions took place in April.
“At that time, we were all thinking about Tanga because of the pipeline from Uganda into Tanga,” he said.
Why Dangote chose Lamu
The Nigerian businessman said the group later assessed potential locations and identified Lamu as a more suitable site.
Dangote said the coastal town offered several natural advantages required for a major refinery.
He cited the availability of water, sufficient sea depth and suitable land as key factors in the decision.
“But later, we realised that the most suitable place to put up the refinery, where there is enough water, sufficient sea depth and good land, is Lamu,” Dangote said.
The group subsequently agreed to proceed with the investment after determining that the project was viable.
Dangote commits to refinery investment
Dangote said his group had already agreed that it could build the refinery after discussions in Nairobi.
He explained that the company’s structure allows him to make commitments on behalf of the board when an investment opportunity is considered viable.
“We began talking about the refinery…we had already discussed it and agreed that, yes, we would be able to build a refinery,” he said.
Dangote added that he could make an initial commitment and later return to the board to formalise the decision.
Lamu refinery construction timeline
President Ruto is expected to break ground for the refinery on September 30, 2026.
The project is projected to take up to three years to complete.
The proposed refinery will have a capacity of 700,000 barrels per day.
It is also expected to produce more than 100 million litres of petrol, diesel and aviation fuel every day.
Countries targeted by Lamu refinery
The refinery is expected to supply refined petroleum products to Kenya and several countries in the region.
The targeted markets include:
- Kenya
- Ethiopia
- South Sudan
- Uganda
- Tanzania
- Rwanda
- Burundi
- Democratic Republic of Congo
The project would therefore serve both the Kenyan market and regional petroleum markets.
Dangote refinery to include power plant
The proposed project is also expected to include a 1,000-megawatt power plant.
Dangote has previously said about 500 megawatts could be available for sale to the Kenyan government.
The power component would form part of the wider industrial infrastructure planned around the refinery.
The Lamu project would also become Dangote Group’s largest refining investment outside Nigeria as the conglomerate expands its energy operations across Africa.
Lamu residents challenge refinery project
The proposed refinery has also faced opposition from some residents in Lamu.
More than 130 residents of Chandavai have moved to court to challenge the development.
The residents have raised concerns over alleged land acquisition and potential displacement.
They have also questioned compensation and resettlement arrangements as preparations for construction move forward.
The concerns come as the project moves towards the planned groundbreaking and subsequent construction phase.
