Aliko Dangote Industries has selected Lamu Island off Kenya's coast as the site for a massive oil refinery costing up to KSh 2.2 trillion.The project, set to process 700,000 barrels of crude daily, aims to reduce East Africa's reliance on imported fuel by serving Kenya, Uganda, Tanzania, South Sudan, and neighboring markets.

Geopolitical economist Aly-Khan Satchu highlighted Lamu's deep-water port as a key advantage, allowing the use of large oil tankers not feasible in other regional ports.The refinery's location near Somalia, which is believed to hold untapped hydrocarbon reserves, further strengthens its strategic value.Dangote plans to fund the project through internal cash flows, bond issuances, and an IPO, avoiding heavy external debt.This decision marks a shift from a previous Tanzanian proposal that stalled due to lack of support.

The refinery could significantly cut Kenya's fuel import costs and create jobs, addressing public frustration over rising fuel prices that led to protests.The project also complements Dangote's Lagos refinery, boosting East Africa's refining capacity to 2.1 million barrels daily.