Kenya’s Lamu refinery project is set to become one of the country’s largest industrial investments, with the African Export-Import Bank (Afreximbank) congratulating the Government and people of Kenya and the Dangote Group following the groundbreaking of the planned facility.
The approximately US$16 billion project is designed to process up to 700,000 barrels of crude oil per day and is expected to create around 60,000 jobs. Its planned regional reach could also establish the refinery as an important industrial and energy asset for Kenya and the wider East African market.
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The refinery is expected to process crude produced in Africa, including supplies from Uganda, before distributing refined petroleum products to Kenya and other markets across the region. By establishing additional refining capacity closer to African producers and consumers, the project could contribute to reducing reliance on imported refined petroleum products while creating opportunities for greater value addition within the continent.
Afreximbank President and Chairman of the Board of Directors, Dr George Elombi, said the significance of the investment extends beyond the construction of a refinery, describing it as an example of the potential for African-led investment to develop major industrial infrastructure.
The project comes as African countries continue to seek ways to strengthen energy security, develop domestic industries and increase the amount of economic value generated from the continent’s natural resources.
For Kenya, the refinery represents a potential expansion of the country’s industrial base and could create opportunities across transportation, logistics, engineering, construction, maintenance, manufacturing and other supporting industries. The expected employment impact could also extend beyond the refinery itself through businesses and services connected to its operations and supply chains.
The Lamu development is also taking place against a backdrop of disruptions to international energy and shipping routes. Recent instability affecting the Red Sea and Bab el-Mandeb, alongside disruptions around the Strait of Hormuz, has highlighted the exposure of economies that depend heavily on distant international supply chains for strategic commodities.
Against this backdrop, additional refining capacity in Africa could provide countries with greater options for sourcing and distributing petroleum products within regional markets. It could also support efforts to retain a larger share of the value generated from African crude production within African economies.
Elombi said recent disruptions to global energy and shipping routes had demonstrated the economic cost of dependence on external supply chains. He argued that Africa has the enterprises, financial institutions and consumer markets required to develop greater productive capacity on the continent.
The Lamu refinery forms part of a wider industrial and infrastructure expansion underway in Kenya, where Afreximbank has established a long-term partnership with the government.
In 2023, the bank launched a US$3 billion Country Programme for Kenya to support public- and private-sector projects covering industrial development, export manufacturing, climate adaptation, irrigation, trade infrastructure and small and medium-sized enterprises.
The programme includes an US$800 million Kenya Climate Change Adaptation Facility supporting irrigation development and agricultural productivity, linking industrial and energy investment with wider economic development priorities.
Afreximbank is also working with the Government of Kenya and ARISE Integrated Industrial Platforms on the development of the Dongo Kundu Integrated Industrial Park in Mombasa and the Naivasha Special Economic Zone II.
Approximately US$1 billion has been earmarked for the two industrial parks, which are expected to support export manufacturing, attract investment and strengthen Kenya’s position as a logistics and industrial gateway connecting East and Central African markets. Government projections have associated the developments with approximately 140,000 jobs once fully developed.
Another part of the industrial expansion is the Vipingo Special Economic Zone in Kilifi County. In 2025, Afreximbank and KCB Group announced an US$800 million financing framework to support companies establishing operations in the zone, comprising US$500 million from Afreximbank and US$300 million from KCB Group.
The financing is intended to support enterprises operating in manufacturing, agro-processing, logistics and other value-addition sectors. Afreximbank had previously provided US$40 million toward development of the special economic zone.
The bank’s relationship with the Dangote Group also extends across several major industrial projects in Africa. Since 2015, Afreximbank says it has invested approximately US$15 billion in the group, including financing for the Dangote Petroleum Refinery and Petrochemicals Complex in Nigeria.
In 2025, Afreximbank signed a US$1.35 billion financing facility as part of an approximately US$4 billion syndicated financing package for Dangote Industries Limited. In 2026, the bank subsequently underwrote US$2.5 billion of a US$4 billion senior syndicated term loan for the refinery.
Following the start of refining operations in Nigeria, Afreximbank also provided a US$1 billion working-capital facility and served as financial adviser on the Naira-for-Crude initiative.
The bank has simultaneously expanded its efforts to support trade in African-refined petroleum products. In 2025, it established a US$3 billion Revolving Intra-African Oil Import Financing Programme designed to facilitate an estimated US$10 billion to US$14 billion in intra-African petroleum imports.
The initiative is intended to make it easier for African buyers to source refined petroleum products from refineries operating on the continent, strengthening links between producers, refiners, distributors and consumers within African markets.
The planned Lamu refinery therefore forms part of a wider push toward greater value addition and intra-African trade. Rather than exporting crude oil and importing finished petroleum products, additional refining capacity could allow more stages of the energy value chain to take place within Africa.
For Kenya and East Africa, the project’s regional dimension will be particularly important. Refining crude sourced from African producers and supplying products to regional consumers could strengthen commercial connections between oil-producing and oil-consuming economies.
The investment also aligns with the broader objectives of the African Continental Free Trade Area (AfCFTA), which seeks to increase trade between African economies and encourage the development of regional value chains. Afreximbank said the growth of globally competitive African companies and regional value chains will be central to achieving the long-term potential of the continental trade agreement.
The Lamu project, alongside Kenya’s industrial parks and special economic zones, illustrates how energy infrastructure can become connected to wider industrial development. Refining capacity can support logistics, manufacturing, engineering and other services while creating opportunities for businesses to participate in increasingly integrated regional supply chains.
The groundbreaking of the refinery consequently marks more than the beginning of a major energy project. It places Kenya at the center of an expanding conversation around African refining, industrialization, value addition and regional energy cooperation.
As construction and associated investments progress, the project’s eventual contribution will depend on its development, financing, supply arrangements, market access and ability to generate the expected employment and regional economic benefits.
