By MyEngineers
Kenyan President William Ruto has directed his deputy, Kithure Kindiki, to lead a joint government and private sector team that will prepare for major investments tied to a planned oil refinery in East Africa, as Nigerian billionaire Aliko Dangote confirmed the project will be sited in Lamu County, along Kenya’s coast.
Dr Ruto disclosed this at State House, Nairobi, during the signing of the Sovereign Wealth Fund Bill, 2026 into law, and revealed that a date has already been fixed for the ground breaking ceremony of the refinery.
“We have set a date for the ground breaking ceremony. We are taking steps to take Kenya to be a first world nation,” Dr Ruto said.
The Kenyan leader’s comments came just hours after Dangote Group announced plans to finance a proposed 700,000 barrel per day refinery in the country, a project the company says will be the largest of its kind in East Africa, through a combination of internally generated cash flow, bonds, and an initial public offering.
According to Reuters, a senior Dangote Group executive said the refinery is expected to take up to three years to complete and will supply refined petroleum products to Kenya and neighbouring countries, cutting the region’s dependence on imported fuel.
The refinery is also expected to further Dangote’s push to expand fuel processing capacity across the African continent, following the successful launch of his 650,000 barrel per day refinery in Lagos.
“The site has been selected, soil tests are under way, and design and engineering work has commenced. Kenya was the choice from the beginning,” Edwin Devakumar, Dangote Industries’ Vice President for Oil and Gas, told Reuters.
The Lamu facility, once completed, will represent Dangote Group’s largest refining investment outside Nigeria.
Mr Devakumar said the project would be financed through a mix of internally generated cash, bonds, and proceeds from a planned initial public offering, though he did not disclose the exact cost of the project. He noted, however, that it would be comparable in scale to the Lagos refinery, which cost more than $20 billion by the time it commenced operations in 2024.
Mr Dangote, ranked by Forbes as Africa’s richest man, has spent months signalling interest in building a major refinery in East Africa. The company had earlier considered Tanzania’s port city of Tanga for the project before settling on Kenya, citing infrastructure, logistics, and market considerations.
The Sovereign Wealth Fund Act
The law signed by Dr Ruto establishes the Sovereign Wealth Fund, into which proceeds from Kenya’s mineral and petroleum wealth will be deposited. The fund is structured around three components.
The Stabilisation Fund is designed to give the national government resources to manage extraordinary internal and external shocks capable of affecting macroeconomic stability.
The Strategic Infrastructure Investment Fund will provide financing for infrastructure priorities aligned with the country’s national development plan.
The Future Generations Fund is intended to build a long term savings base for the benefit of future generations, once revenue from minerals and petroleum resources begins to decline.
Under the new law, 30 percent of all proceeds from mineral and petroleum revenues will be ring fenced for the Future Generations Fund. The Act also bars the government from using the Future Generations Fund as collateral, or drawing advances or credit against it in any form.