Rwanda is in preliminary discussions to acquire an equity stake in Aliko Dangote’s planned $16 billion oil refinery in Lamu, Kenya, as the East African country seeks to strengthen its long-term energy security.
Rwandan President Paul Kagame described the talks as a “work in progress,” but said Rwanda would be pleased to participate in the investment.
Dangote is offering East African governments a combined 30% stake in the proposed refinery, with the regional package valued at around $1.5 billion. Kenya is reportedly considering a 10% stake, worth roughly $500 million, while Rwanda and Ethiopia are negotiating their potential allocations.
The planned Lamu refinery would have a processing capacity of 700,000 barrels per day, matching the capacity of Dangote’s major refinery in Lagos. The facility is expected to process crude supplied from oil-producing areas in Kenya and Uganda.
For landlocked Rwanda, an equity position could provide greater access to regionally refined fuel and reduce its dependence on costly petroleum imports transported over long distances by road.
The project is expected to include not only the refinery but also significant port and petrochemical infrastructure, potentially bringing the overall investment to around $20 billion.
Groundbreaking is reportedly targeted for October 2026, with construction expected to take between three and five years.
If completed, the Lamu project could become one of East Africa’s largest energy investments and significantly reshape regional fuel supply and trade.
Note by Alessandro Bazzoni