Nigerian businessman Aliko Dangote has moved ahead with plans for a major refinery project in Kenya, with a groundbreaking ceremony held for the proposed $16 billion East Africa Petroleum Refinery in Lamu.
The project is expected to have a refining capacity of about 700,000 barrels per day and is being positioned as a major energy and industrial project for the East African region.
Kenyan President William Ruto attended the groundbreaking ceremony alongside Dangote and other officials.
The proposed refinery is expected to supply petroleum products to markets across East Africa and reduce the region’s dependence on imported refined fuel.
However, the project is also facing a legal dispute over the land where it is planned to be constructed.
The Financial Times reported that a Kenyan court ordered the parties to maintain the status quo after residents filed a petition challenging aspects of the development, including claims relating to ancestral land, compensation and environmental assessment.
Despite the court proceedings, Dangote has said he remains committed to the project.
The development comes as Dangote also continues efforts to raise capital through the public offering of shares in his Nigerian refinery.
Reuters reported that the Lagos refinery IPO has attracted significant investor interest, while the Kenya project is expected to expand Dangote’s presence in Africa’s energy sector.
The proposed Kenyan refinery would therefore represent another major step in Dangote’s strategy of developing large-scale industrial infrastructure beyond Nigeria.
