Nigerian billionaire Aliko Dangote is seeking investment from East African countries for a planned $16bn oil refinery in Kenya.
Kenya, Ethiopia and Rwanda have expressed interest in taking part in the project. Kenya is considering a 10% stake worth about $500m, according to David Ndii, an economic adviser to President William Ruto. The three countries could together provide about $1.5bn in equity.
The refinery is planned for Lamu on Kenya’s coast and is expected to process 700,000 barrels of crude oil a day. Dangote says the project will serve Kenya and wider East African markets, rather than relying on Kenyan demand alone.
The project was initially estimated at $17bn but has since been revised to about $16bn. Dangote has said construction is expected to begin by October and take less than four years.
The refinery would expand Dangote’s refining business beyond Nigeria and could help supply East African markets with locally refined petroleum products, reducing the region’s reliance on imports.
The project is expected to be financed with 30% equity and 70% debt.