Kenya has announced plans to officially break ground on the proposed Dangote oil refinery later this year, marking a significant milestone in a project expected to transform the country’s energy sector and strengthen regional fuel security.

President William Ruto said the groundbreaking ceremony will take place on August 8, 2026, adding that the government has begun coordinating activities to ensure the project moves forward as scheduled. He also directed Deputy President Kithure Kindiki to lead a joint team of government agencies and private sector stakeholders responsible for overseeing the refinery’s implementation.

The refinery will be located in Lamu County and is designed to process up to 700,000 barrels of crude oil per day. When completed, it is expected to become the largest refinery in East Africa, positioning Kenya as a major refining and petroleum distribution hub for the region.

The facility is expected to reduce the region’s dependence on imported refined petroleum products by supplying fuels to Kenya and neighbouring countries, including Uganda, Rwanda, Burundi, South Sudan and parts of the Democratic Republic of Congo.

The investment is part of the Dangote Group’s broader expansion strategy beyond Nigeria, where it operates the 650,000-barrel-per-day Dangote Refinery in Lagos. Construction of the Kenyan refinery is expected to take between two-and-a-half and three years, with funding to be sourced through a combination of company funds, bond issuances and a planned initial public offering.

Industry observers believe the project could improve fuel availability across East Africa, enhance regional energy security and create thousands of jobs during both the construction and operational phases.