Rwanda is exploring an equity stake in Dangote Group’s proposed $16 billion Lamu oil refinery in Kenya, potentially strengthening regional fuel security and deepening East Africa’s integration of refining and petroleum supply infrastructure.
The proposed refinery, planned for Lamu on Kenya’s coast, is expected to have a processing capacity of around 700,000 barrels per day, positioning it as one of the largest refining projects planned for Africa. The facility would supply refined petroleum products to Kenya and neighbouring East African markets, including Rwanda.
Dangote has offered East African governments a combined 30% stake in the project. Kenya is considering a 10% interest valued at about $500 million, while Rwanda and Ethiopia have also been invited to participate in the regional shareholding structure. The combined regional investment could reach approximately $1.5 billion.
For Rwanda, participation could provide a strategic route to securing long-term access to refined fuels while reducing exposure to international fuel supply disruptions and transportation costs. The investment would also give Kigali a direct interest in a major regional energy infrastructure project.
The Lamu refinery is designed to serve a wider East African market, with surplus refined products potentially supplying Uganda, South Sudan, Rwanda, Burundi and eastern Democratic Republic of Congo. At 700,000 barrels per day, the proposed facility would have capacity significantly above current regional refined-fuel demand.
The project also builds on Dangote’s experience with its 650,000-barrel-per-day refinery in Lagos, which has significantly expanded Nigeria’s refining capacity and changed regional fuel trade flows. Dangote is seeking to apply lessons from the Lagos project to the proposed Lamu development, including tighter cost and construction planning.
Construction of the Lamu refinery is targeted to begin in September or October 2026, with completion expected within approximately three to five years, subject to the project’s development and approvals.
The potential Rwandan participation highlights the growing push for regional refining capacity, energy security and cross-border petroleum infrastructure in East Africa, while giving participating governments a direct financial interest in the development of a major new fuel supply hub.
