Aliko Dangote breaks ground on Kenya’s $16bn mega-refinery amid legal and environmental challenges

Aliko Dangote, Africa’s richest man, broke ground on a $16 billion mega-refinery in Lamu, Kenya, on Wednesday, marking what he called a “new chapter in Africa’s industrial journey.” The refinery will have a capacity of 700,000 barrels per day, larger than any in Europe, and is expected to be completed within 30 to 40 months.

The project, supported by Kenyan President William Ruto and regional leaders including Ethiopian Prime Minister Abiy Ahmed and Ugandan President Yoweri Museveni, aims to reduce Africa’s reliance on imported refined fuels and foreign expertise.

Despite its promise, the refinery faces challenges including a lawsuit from a local community over land rights, with a court ruling allowing ground-breaking but the case ongoing. Environmental groups such as Greenpeace have raised concerns about the impact on Lamu, a UNESCO World Heritage site known for its historic Swahili settlement.

Dangote dismissed these challenges, stating readiness to face legal troubles. The refinery will include a 1,000-megawatt power facility, half of which will supply the Kenyan grid. Initially, crude oil will be sourced from the Middle East, the US, and other regions, with plans to incorporate oil from Kenya and Mozambique as production increases.

The project emerges amid regional competition, with Uganda and Tanzania announcing a rival $20 billion refinery and energy hub at Tanzania’s port of Tanga. Uganda is set to start oil production soon and has nearly completed a pipeline to the Tanzanian coast.