Rwanda is among three East African countries considering taking a stake in a planned oil refinery in Kenya backed by Nigerian billionaire Aliko Dangote, as countries in the region seek a share in a project expected to become a major source of refined fuel.
Kenya, Ethiopia and Rwanda have expressed interest in a combined 30% stake in the refinery planned for Lamu, according to David Ndii, an economic adviser to Kenyan President William Ruto. The regional stake is valued at about $1.5 billion.
Kenya plans to take a 10% stake worth about $500 million, while the contributions of Ethiopia and Rwanda have not been disclosed.
The refinery is expected to cost between $16 billion and $20 billion and have a processing capacity of up to 700,000 barrels of crude oil a day, putting it on a similar scale to Dangote’s refinery in Lagos, Nigeria.
Ndii said construction is expected to begin in September, with the project also including port infrastructure for handling crude oil and petroleum products.
The refinery is expected to process crude from Kenya and Uganda, creating a regional outlet for locally produced oil while supplying refined products to East African markets.
Uganda has not expressed interest in the regional stake, partly because it is pursuing its own refinery project. The country plans to develop a facility with a capacity of 60,000 barrels a day in partnership with UAE-based Alpha MBM Investments.
Kenya expects the Dangote refinery to generate about $4 billion in annual economic activity, while its regional investors would hold a direct stake in a project aimed at expanding petroleum refining capacity in East Africa.
