Ethiopian Prime Minister Abiy Ahmed has said the planned Dangote East Africa Petroleum Refinery in Lamu could give East African countries a new source of fuel while opening fresh opportunities for regional trade, investment and industrial growth.
Speaking at the groundbreaking ceremony in Mokowe, Lamu County, on Wednesday, Abiy said the $16 billion project could help change a regional pattern in which much of the petroleum used by African economies is processed outside the continent.
“For too long, much of the fuel that powers our economies has been refined elsewhere. This leaves us exposed to shocks in global markets. As our cities grow and our industries expand, demand for fuel continues to rise. The Lamu refinery offers a way to change that balance.”
The refinery is designed to handle up to 700,000 barrels of crude oil each day and is expected to be completed in 2030.
Once operational, it will supply refined petroleum products to Kenya and other East African markets, while also supporting the growth of industries linked to petroleum processing and manufacturing around Lamu Port.
Abiy’s remarks come against the backdrop of rising petroleum demand in Kenya and continued reliance on imported fuel.
Data from the Kenya National Bureau of Statistics shows that Kenya imported 5.5 million tonnes of petroleum products in 2025, an increase of 12.2 per cent. Domestic consumption also climbed by 9.9 per cent to 5.7 million tonnes, while the country’s petroleum import bill reached Sh528.8 billion.
The Ethiopian Prime Minister said the refinery could help widen the region’s access to petroleum products while creating room for more business activity.
“Once complete, it will bring refining closer to African markets and add significant capacity to this part of the continent. Its value goes beyond fuel. Related industries may develop around it; located within the LAPSSET development, it can connect refining more closely with regional markets.”
Ethiopia, he said, stands to gain from having another supply option within the region.
“For Ethiopia, an additional regional source will broaden our supply options and create new opportunities for trade and investment.”
L-R: Prime Minister of Ethiopia, Abiy Ahmed Ali; Uganda President, Yoweri Museveni; President William Ruto; Industrialist and businessman Aliko Dangote; Former Nigerian President, Olusegun Obasanjo; President of Benin, Romuald Wadagni and President of Togo, Jean-Luc Savi de Tové during the launch of the Dangote East Africa Petroleum Refinery at Mokowe, Lamu County on September 30, 2026. PHOTO/PCS
The refinery is located within the Lamu Port-South Sudan-Ethiopia Transport corridor, commonly referred to as LAPSSET.
The corridor links Lamu Port with Kenya’s hinterland and neighbouring countries, among them Ethiopia and South Sudan, and is intended to support movement of goods and wider economic activity across the region.
The positioning of the refinery along the corridor is expected to encourage the establishment of businesses involved in transport, logistics, manufacturing, petrochemicals and other areas connected to the petroleum industry.
Crude for the facility is expected to come from sources including Kenya’s Lokichar basin, alongside other regional and international supplies.
Abiy also recognised President William Ruto’s backing of the investment, saying the refinery has importance beyond Kenya’s borders.
He praised Dangote Group President Aliko Dangote for bringing his experience in large-scale industrial ventures, including cement, fertiliser and refining, to the Lamu project.
“My brother Al-Hajj Aliko Dangote, you have built an African industrial enterprise of global scale in cement, fertilizer, and refining. You have invested in the basic industries on which modern economies depend. By bringing that experience to Lamu, you give this project the weight of a proven record.”
Dangote’s Nigerian refinery has a stated capacity of 700,000 barrels per day. The Lamu facility is being planned at the same processing capacity and is expected to become the largest refinery in East Africa after completion.
For Abiy, however, the project’s importance extends beyond the amount of fuel it will produce.
He said the region should use such investments to build local industries, increase production and keep more value within Africa rather than mainly serving as a market for finished goods.
“East Africa is not only a market; it’s a place to produce, to build, and to create value.”
The Ethiopian leader also called on young people across Africa to prepare for the technical and business opportunities that major industrial projects can create.
“Young Africans should not remain observers of projects such as this. They should become their engineers, technicians, entrepreneurs, and leaders. That is how a project of this scale leaves a lasting legacy.”
The Kenyan government expects the broader refinery and industrial development to generate more than 60,000 jobs, including positions requiring specialised skills.
Abiy said stronger cooperation between governments, private companies and countries in the region could help increase Africa’s capacity to produce goods locally.
“When national leadership, private enterprise, and regional cooperation come together, they can change what our region produces. Ethiopia welcomes its development. May the Lamu refinery help Kenya well and help Africa produce more of what it needs.”
The project now enters the construction phase, with its progress and eventual contribution to the region tied to factors including financing, supporting infrastructure, access to crude, demand from regional markets and the development of industries around the refinery.