Rwanda considers stake in Dangote’s planned $16 billion oil refinery in Kenya

By The Inspirer.

President Paul Kagame has confirmed that Rwanda is considering investing in a planned oil refinery in Kenya backed by Nigerian businessman Aliko Dangote, as East African countries explore opportunities to participate in the major regional energy project.

Kagame made the remarks on Monday, August 24, 2026, during a press conference in Kigali, saying Rwanda would welcome the opportunity to participate, although discussions are still at an early stage.

“There have been discussions like that, but it is still too early to say much about what is contained in those discussions,” Kagame said. “But what I can say is that Rwanda would be happy to participate in that investment.”

Dangote Group has offered East African governments a combined 30% equity stake in the planned refinery, which is expected to be built in Lamu on Kenya’s coast. The regional stake could be worth about $1.5 billion. Kenya is considering a 10% stake valued at about $500 million, while Rwanda and Ethiopia have also expressed interest.

The refinery is projected to have a capacity of up to 700,000 barrels of crude oil per day, putting it on a scale comparable to Dangote’s refinery in Lagos, Nigeria. Estimates for the refinery itself range around $16 billion, while associated petrochemical and port infrastructure could bring the overall investment closer to $20 billion.

The proposed facility is expected to serve several East African markets, including Kenya, Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo, potentially reducing the region’s reliance on imported refined petroleum products.

The project would also be strategically linked to Lamu Port and the LAPSSET corridor, strengthening the area’s potential as a regional logistics and energy hub.

Kenyan officials have indicated that construction could begin in September 2026, although the investment arrangements involving regional governments are still being discussed.

For Rwanda, participation would provide an opportunity to take a direct stake in a major regional energy project and potentially benefit from increased access to refined petroleum products.

However, Kagame stressed that Rwanda’s possible investment remains under discussion and that it is too early to provide details on the size or structure of any potential stake.

The proposed investment comes as East African countries seek to strengthen regional energy security, expand industrial capacity and reduce dependence on imported petroleum products.