Africa’s richest man Aliko Dangote formally kicked off construction of a $16 billion oil refinery in Kenya on Wednesday, aiming to replicate the success of his plant in Nigeria which has turned the country into a fuel-producing powerhouse amidst a global energy crisis.
The new refinery on the island of Lamu is set to be completed in 2030, ultimately refining 700,000 barrels a day. It will serve a region that has historically relied on Middle East fuel imports as part of a broader push to strengthen Africa’s energy security and bolster economic growth. Kenya’s President William Ruto was joined at the groundbreaking ceremony by the presidents of Ethiopia and Uganda.
The planned refinery already faces competition from upcoming projects in Tanzania and Uganda, however. Separately, a Kenyan court had granted a group claiming ownership of the refinery’s proposed site the right to maintain status quo until a hearing on the case in October, though the order did not prevent Dangote’s kick-off event. The group plans to list shares of its Nigeria refinery on the Nairobi Securities Exchange in December, following a Lagos initial public offering two weeks ago.