Dangote Group has offered East African countries a combined 30 per cent equity stake in a proposed refinery in Kenya, with Kenya, Ethiopia and Rwanda expressing interest.
The planned facility is expected to form part of a major expansion of Aliko Dangote’s energy investments across Africa.
Kenyan presidential economic adviser David Ndii said Kenya could take a 10 per cent stake valued at about $500 million.
That would put the combined potential investment by regional governments at about $1.5 billion if the full 30 per cent allocation was taken up.
The refinery itself is projected to cost as much as $16 billion.
Associated petrochemical and port infrastructure could raise the broader investment requirement to about $20 billion.
Groundbreaking is expected in September, according to the information presented at a capital markets forum in Nairobi.
The proposed facility would receive crude from oil fields in Uganda and Kenya and is expected to process about 600,000 barrels a day.
Ethiopia and Rwanda have indicated interest in participating.
Uganda has not yet decided whether to invest, partly because it is pursuing a separate refinery project.
Ndii said the refinery could inject roughly $4 billion into the Kenyan economy annually.
He also argued that the refinery and other large industrial projects under consideration could make a material contribution to Kenya’s gross domestic product.
The Kenyan project is being developed after Dangote’s large refinery in Lagos emerged as a major supplier of refined petroleum products to Nigeria and regional markets.
The proposed East African facility could also deepen regional integration by linking crude production, refining, logistics and distribution across several countries.
The final ownership structure, financing arrangements and project timeline remain subject to negotiations and investment decisions.
