ADDIS ABABA — Ethiopia has emerged alongside other East African nations as a key participant seeking equity stakes in a planned multi-billion dollar oil refinery in Kenya spearheaded by Nigerian billionaire Aliko Dangote, according to regional disclosures on Saturday, August 22, 2026.
The Dangote Group has offered a combined 30 percent equity stake to East African countries within the proposed regional refining venture. David Ndii, economic adviser to Kenyan President William Ruto, confirmed at a capital markets forum in Nairobi that Kenya is slated to take a 10 percent share valued at approximately $500 million. Ethiopia and Rwanda have likewise signaled active interest in securing positions, which could bring total regional capital participation to roughly $1.5 billion.
Project Scope and Infrastructure Integration
The proposed facility, slated for construction near Lamu, is designed to process up to 700,000 barrels of crude oil per day. Total capital expenditure for the refinery alone is projected between $16 billion and $17 billion, with associated port infrastructure pushing total project costs toward $20 billion. The development aims to process crude derived from domestic and regional fields across Kenya and Uganda to supply refined petroleum products throughout East Africa.
The venture aligns with the broader Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor framework, designed to connect East African coastal logistics directly with landlocked commercial hubs. Groundbreaking for the Lamu facility is scheduled to take place before the end of 2026, marking Dangote's major refining expansion beyond its existing Nigerian operations.
Wider Regional Energy Partnerships
For Ethiopia, the prospective equity investment builds upon a series of deepening cross-border energy and industrial agreements. The Dangote Group is already heavily invested in Ethiopian infrastructure through a $2.5 billion joint venture with Ethiopian Investment Holdings to construct a major fertilizer production complex in Gode, located within the Somali Region.
Furthermore, Ethiopian state holdings have engaged with regional ports authorities to establish integrated fuel storage corridors to streamline fuel transport from coastal terminals directly inland.
Why are East African nations seeking equity stakes in the Dangote refinery project?
East African nations are pursuing equity positions to secure long-term energy security, stabilize regional fuel supply chains, and participate directly in the profits of the $20 billion Lamu refining installation.
The investment framework and equity breakdown were disclosed on August 22, 2026.
Groundbreaking for the Lamu refinery project is officially scheduled to take place before the end of 2026.