Africa’s richest man, Aliko Dangote, wants the Kenyan government to protect his planned Ksh2.2 trillion oil refinery in Lamu from cheap imported fuel.

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Dangote said the refinery would struggle to compete with refined petroleum products from countries such as Russia and India unless Kenya puts measures in place to shield the facility from what he described as dumping.

The Nigerian billionaire is planning to invest about $16 billion in the project, with about 70 per cent expected to be financed through debt and the remaining 30 per cent through equity.

The debt portion would amount to roughly $11.2 billion, while Dangote said his group had no difficulty raising the required financing for the massive project.

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He said the Kenyan government would also need to provide land, support regional financing and establish a policy framework that would give the refinery a stable market once production begins.

The proposed facility is expected to process between 650,000 and 700,000 barrels of crude oil per day, making it one of the largest refineries in Africa and a major addition to Kenya’s energy infrastructure.

A few days ago, Dangote announced that construction could begin by October this year, with preparations for the groundbreaking already at an advanced stage. He said the project would take less than four years to complete once construction begins.

The refinery’s estimated cost has also been revised downwards from about $17 billion to $16 billion, which Dangote attributed partly to the shorter construction period and lessons learned from building his refinery in Lagos.

He added that Lamu is also emerging as a potential industrial hub, with the government finalising plans for a Ksh12.9 billion palm oil processing plant at Witu Nyangoro Ranch. Principal Secretary for Investment Promotion Abubakar Hassan said the facility could create about 3,000 jobs and help reduce Kenya’s reliance on imported palm oil.

President William Ruto has previously said Kenya intends to take a stake in the project through the National Infrastructure Fund as the government seeks to strengthen energy security and reduce dependence on imported refined fuel.

📰 Source: Kenyans.co.ke