Aliko Dangote’s Dangote Industries has settled on Lamu, an island off Kenya’s coast, as the site for its planned 700,000-barrel-per-day East African refinery, ending months of speculation over Mombasa and Tanzania’s Tanga port.
Group Vice President for Oil and Gas Devakumar Edwin says the facility will take about 30 months to build and will be financed through internal cash flow, bonds, and a planned initial public offering.
Combined with Dangote’s Lagos refinery, which is expanding from 650,000 to 1.4 million barrels per day, the group’s total refining capacity will reach 2.1 million barrels daily, among the largest privately owned refining networks in Africa.
Kenyan President William Ruto has pledged government co-financing through Kenya’s National Infrastructure Fund and says regional governments, including Uganda and Tanzania, will also invest, since the region currently imports most of its refined fuel from abroad.
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