Dangote Industries has finalized its decision to build a 700,000 bpd oil refinery in Kenya, specifically on Lamu Island, marking a significant shift from initial plans to locate the project in Tanzania.The USD 19.3 billion project, estimated at KSH 2.5 trillion, will take approximately 30 months to construct and will supply refined petroleum products to Kenya, Uganda, Tanzania, and South Sudan.The choice of Lamu was influenced by factors such as port depth and cargo handling capacity, with Kenya's government pledging KSH 21.5 billion in seed capital.

This decision follows months of regional discussions, including Tanzania's President Samia Suluhu Hassan raising concerns about the Tanga port proposal.The refinery will enhance Dangote's refining capacity across Africa to 2.1 million barrels per day, complementing its existing Lagos facility.The project underscores Kenya's strategic role in regional energy infrastructure and aims to reduce East Africa's reliance on imported fuel.

The decision also highlights the complexities of cross-border investments and the importance of regional cooperation in large-scale infrastructure projects.