Rwanda Eyes Stake in $20 Billion Dangote-Backed Kenya Oil Refinery

Rwanda is considering investing in a planned oil refinery in Kenya backed by Nigerian billionaire Aliko Dangote, as East African countries seek greater involvement in a project expected to significantly expand the region’s refining capacity.

Kenya, Ethiopia and Rwanda have expressed interest in acquiring a combined 30% stake in the proposed refinery at Lamu, according to David Ndii, an economic adviser to Kenyan President William Ruto. The regional investment is estimated at about $1.5 billion.

Kenya is expected to contribute 10%, valued at approximately $500 million, while the potential investments from Ethiopia and Rwanda have not yet been disclosed.

The refinery is projected to cost between $16 billion and $20 billion and could process up to 700,000 barrels of crude oil per day. If completed at that scale, it would be comparable to Dangote’s major refinery in Lagos, Nigeria.

According to Ndii, construction is expected to start in September. The project will also include port infrastructure designed to handle crude oil imports and refined petroleum products.

The facility is expected to process crude oil produced in Kenya and Uganda, providing a regional outlet for East Africa’s growing oil production while supplying refined petroleum products to markets across the region.

Uganda, however, has not indicated an interest in joining the proposed regional investment. The country is pursuing its own refinery project, with plans for a 60,000-barrel-per-day facility being developed in partnership with UAE-based Alpha MBM Investments.

Kenya estimates that the Dangote-backed refinery could generate around $4 billion in economic activity annually.

Source:The Dawn Rwanda