Africa’s richest man breaks ground on $16B oil refinery in Kenya
NAIROBI, Kenya- Africa's richest man Aliko Dangote broke ground on a $16 billion oil refinery in Kenya's coastal Lamu County on Wednesday, launching a major energy project intended to supply fuel to the wider East African market.
The Dangote East Africa Refinery is designed to process 700,000 barrels of crude oil a day and supply gasoline, diesel and jet fuel to Kenya and neighbouring countries, potentially reducing the region’s reliance on imported refined fuel.
"I want to promise you that we will come back and commission this refinery 40 months from today," Dangote said at the groundbreaking ceremony.
Kenyan President William Ruto, who attended the ceremony, said the government planned to acquire a stake through its National Infrastructure Fund and open investment opportunities to the public.
"Kenyans from all walks of life have an opportunity to invest in this refinery. The government is going to have a stake in the refinery, and we are going to deploy assets. We do not want anything for free," Ruto said.
Earlier Wednesday, Ruto inspected construction equipment assembled at the site, saying “the magnitude of the machinery” reflected ambitions to make Lamu a major energy and industrial hub for East Africa and beyond.
Dangote also highlighted the pace of preparations, saying more than 110 pieces of equipment were already on site, with another 400 expected within 60 days.
“This is the second-fastest project we have launched, after the fertiliser factory in Ethiopia. I don’t know what magic you used on me, President Ruto,” he said.
He also argued that African economies needed to expand refining and other processing industries to reduce their reliance on exporting raw materials and importing finished products.
"Africa cannot build lasting prosperity by exporting what we have and importing what we need," Dangote said.
Ugandan President Yoweri Museveni, Benin President Romuald Wadagni, Togo President Jean-Lucien Savi de Tové and
Ethiopian Prime Minister Abiy Ahmed attended the ceremony, alongside former Nigerian President Olusegun Obasanjo and representatives of other African governments.
Project faces legal challenge
The project is, however, facing a legal challenge over land earmarked for the development.
A group of 133 residents has gone to court claiming ancestral rights to the disputed land and raising concerns about compensation and environmental safeguards.
Dangote said the company was prepared to face legal challenges.
"We're not scared of people taking us to court. Anybody who wants to cause trouble, we're ready for his trouble, and we'll give him a headache," he said.
The Environment and Land Court in Malindi has ordered the parties to maintain the status quo on the disputed land pending further proceedings scheduled for Oct. 14.

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