Dangote Builds $16 Billion Refinery in Kenya Despite Limited Oil Production

Africa's richest man, Aliko Dangote, is building a $16 billion refinery in Kenya, despite the country's limited oil production. The proposed 700,000-barrel-per-day refinery in Lamu stands in stark contrast to Kenya's own oil prospects, with the country struggling to commercialize crude discovered in the South Lokichar Basin in 2012.

The initial output target is about 20,000 barrels per day, rising towards 50,000 from 2032. Even under the higher projection, domestic crude would cover only about 17% of Dangote's planned refinery capacity.

Dangote's experience with his Lagos refinery in Nigeria appears to have shaped his thinking in Kenya. The Lagos project was built partly to address one of Nigeria's biggest petroleum contradictions, where the country exported crude while importing large volumes of petrol and diesel due to its state-owned refineries' ineffectiveness.