Our gauge is how much investment every shilling of government or society assets can mobilise from the personal sector, pension money, insurance companies and other lengthy-term assets.”
The financing arrangement marks a departure from an strategy in which huge infrastructure projects are principally funded through means of government borrowing or community expenditure.
Dangote said the facility would generate up to 1,000 megawatts of electricity, produce one million tonnes of polypropylene and include base-oil production.
Lamu Refinery Targets Energy Security
The facility is planned to procedure crude from Kenya’s Turkana oilfields as well as supplies from other parts of Africa and is expected to decrease the region’s dependence on imported petroleum products. The proposed refinery is too expected to become an anchor for a wider industrial complicated roughly Lamu.
- The planned complicated includes power generation, petrochemicals and manufacturing, as well as logistics and engineering services.
- The project is being positioned as a area energy-security investment, together with the refinery expected to provide markets beyond Kenya and lessen East Africa’s reliance on imported elegant petroleum products.
- Kenya is reported to remit concerning KSh530 billion ($4.08 billion) importing petroleum products annually, according to Ruto, underscoring the size of the domestic address the refinery could assist.
- Ruto said the project would furthermore offer Lamu Port and the LAPSSET corridor an economic anchor by generating request for transporters, contractors, engineers, manufacturers and other facility providers.
The project is hence being positioned approximately both domestic deliver and a wider territorial advertise, together with the planned industrial sophisticated expected to endorse added economic measure on Lamu.
Dewji Eyes Dangote Refinery Stake
Nairametrics reported in July this year that Tanzanian billionaire Mohammed Dewji had expressed draw in investing $100 million in Aliko Dangote’s proposed oil refinery in Kenya, a project expected to become one of Africa’s largest refining facilities as the Nigerian industrialist expands his footprint across East Africa.
- Dewji had outlined his willingness to take section in the multi-billion-dollar refinery project despite his option for Tanzania as the host country.
- Despite the truth that Dewji said he would have preferred the refinery to be built in Tanzania, he indicated that he remains transparent to investing in the project if it lastly proceeds in Kenya, stating, “I would lean greater toward Tanzania than in Kenya.”
- He too revealed that discussions including Dangote are yet to start but said he intends to initiate talks on participating in the refinery project.
- “Surely extend to out to him and we can chat around it,” Dewji said.
Dewji’s earlier comments matter to latent worry from confidential investors in the project, whereas the up-to-date distribute introduces the Kenyan government as a prospective investor through means of the Nationwide Infrastructure Finance.
The Kenyan government has announced plans to commit in the proposed KSh2.2 trillion ($16 billion) Lamu oil refinery using the Domestic Infrastructure Support.
Kenyan President William Ruto disclosed this at the groundbreaking ceremony in Lamu on Wednesday, September 30, 2026, opening a novel financing model for one of East Africa’s largest planned industrial projects.
The government’s outline to obtain a stake in the refinery will come alongside plans by Aliko Dangote to supply Kenyans an likelihood to shop for shares in the refinery across the Nairobi Securities Exchange, potentially broadening nearby ownership of the project.
Kenya to Apply in Dangote Refinery
President William Ruto said the government would deploy condition assets, including land, alongside the infrastructure sponsor to put finance into in the refinery being developed by Nigerian billionaire Aliko Dangote.
- President Ruto said at the ceremony, “We are going to use the Nationwide Infrastructure Sponsor to expend in this refinery.”
- Ruto said the government could not support every important road, railway, port, energy project and industrial undertaking through taxes and audience debt.
- “Our activity is no longer to plainly request how much government can employ.
Source: Kenyan government to buy stake in $16 billion Dangote Lamu oil refinery
