Aliko Dangote is offering East African countries a combined 30% equity stake in a planned oil refinery in Lamu, Kenya, as he seeks regional partners for a project that could reshape fuel supply across East Africa.

Kenya could take a 10% stake worth approximately $500 million, while Ethiopia and Rwanda have also expressed interest in participating. According to David Ndii, economic adviser to Kenyan President William Ruto, the combined regional investment could reach about $1.5 billion.

The proposed refinery is expected to have a processing capacity of 700,000 barrels of crude oil per day, making it one of Africa’s largest refining projects and slightly larger than Dangote’s 650,000-barrel-per-day refinery in Lagos.

The refinery is estimated to cost between $15.5 billion and $16 billion, while the wider development, including petrochemical facilities and supporting infrastructure, could require significantly more investment. Construction is expected to take around three to five years, with groundbreaking targeted for later in 2026.

The Lamu project is strategically positioned to serve Kenya and other East African markets with refined products such as petrol, diesel, and aviation fuel. The region currently depends heavily on imported refined petroleum products, leaving countries exposed to international prices, shipping costs, and supply disruptions.

For Kenya and potential regional partners, taking an equity stake could provide both a financial interest in the project and greater access to locally refined fuel. For Dangote, the investment would expand his influence beyond Nigeria and strengthen his position in Africa’s downstream energy sector.

If successfully completed, the Lamu refinery could become a major regional energy hub, reducing East Africa’s dependence on imported refined fuel while supporting trade, industrial development and energy security across the region.