Rwanda is exploring an investment in Aliko Dangote’s planned $16 billion oil refinery in Lamu, Kenya, as the country looks to strengthen its energy security and secure more reliable access to refined petroleum products.
Rwandan President Paul Kagame has confirmed that preliminary discussions are underway between Rwanda and the sponsors of the proposed project. While the details of Rwanda’s potential investment have not yet been finalised, Kagame said the country would welcome the opportunity to participate in the major regional energy project.
Dangote is seeking participation from governments across East Africa and has offered the region a combined 30% equity stake in the refinery. Kenya is reportedly considering a 10% share, while Rwanda and Ethiopia are discussing their potential participation.
The proposed Lamu refinery is expected to have a processing capacity of up to 700,000 barrels of crude oil per day, putting it among the largest planned refining projects in Africa. The facility is intended to serve growing fuel demand across East Africa, including Kenya, Uganda, South Sudan, Rwanda and Ethiopia.
For Rwanda, which is landlocked and relies heavily on imported petroleum products transported through regional corridors, an equity position could provide strategic advantages. Direct participation in the refinery could improve the country’s access to refined fuels while potentially reducing exposure to international supply disruptions, transportation costs and price volatility.
The project is also expected to benefit from Kenya and Uganda’s growing oil production. Crude from the region could eventually supply the refinery, creating a more integrated East African energy supply chain and reducing the need to import finished petroleum products from distant markets.
Dangote’s proposal reflects a broader effort to develop regional partnerships around the Lamu energy hub. The planned refinery is expected to form part of a much larger infrastructure development involving oil transportation, port facilities and potentially petrochemical operations.
If completed, the project could significantly reshape the East African petroleum market by creating a major regional source of refined fuel. It could also deepen energy cooperation between Kenya and its landlocked neighbours while providing producers such as Uganda with a potential nearby outlet for their crude.
For Rwanda, the proposed investment is therefore about more than financial participation. Securing a stake could give the country a greater role in the region’s future energy infrastructure and provide a potential long-term source of fuel for its expanding economy.
The project remains at the development and financing stage, however, and significant work will still be required before construction and eventual production can begin. Details of Rwanda’s potential stake, financing arrangements and the final structure of the regional partnership have yet to be confirmed.
Nevertheless, Kigali’s interest highlights the growing strategic importance of the proposed Lamu refinery and the potential for the project to become a cornerstone of East Africa’s future energy infrastructure.
Note by Alessandro Bazzoni