KAMPALA, Uganda — Rwanda has joined Kenya and Ethiopia in expressing interest in acquiring an equity stake in Nigerian billionaire Aliko Dangote’s planned oil refinery in Lamu, Kenya, as East African countries position themselves for ownership in a project expected to reshape the region’s fuel supply market.
Rwandan President Paul Kagame confirmed that his country is in early discussions over a possible investment in the proposed refinery, saying Rwanda would be “very happy” to participate.
The development comes after Kenya’s economic adviser David Ndii disclosed that Dangote Group had offered East African countries a combined 30 percent stake in the refinery.
Kenya has been offered a 10 percent stake valued at approximately $500 million, leaving up to 20 percent of the regional allocation for other interested countries. Ethiopia and Rwanda have both expressed interest, potentially taking the total East African investment to about $1.5 billion if the full 30 percent allocation is subscribed.
The proposed refinery is expected to cost between $16 billion and $17 billion, although some recent reports have placed the project’s potential cost at about $20 billion. It is planned to have a refining capacity of up to 700,000 barrels of crude oil per day, which would make it one of Africa’s largest refining projects.
Dangote’s offer gives East African governments an opportunity to take direct ownership in a major regional energy project while potentially strengthening access to locally refined petroleum products.
For Rwanda, the proposed investment could provide a strategic position in a major petroleum supply chain serving East Africa. Kigali’s interest also signals growing competition among regional governments for a share of the refinery as construction approaches.
The project is currently targeting the start of construction later in 2026, subject to regulatory approvals.
The allocation is also drawing attention in Uganda and Tanzania, which have yet to publicly confirm whether they intend to seek a share of the regional equity package.
For Uganda, the development carries particular significance given its own plans to establish a petroleum refinery at Kabaale in Hoima. A large refinery at Lamu could become an important alternative source of refined petroleum products for East African markets and potentially affect the region’s future fuel trade routes.
With Kenya, Ethiopia and Rwanda already showing interest, the remaining portion of Dangote’s 30 percent regional offer could become increasingly competitive among East African states.
The Lamu project was initially associated with Tanzania before being relocated to Kenya, and Dangote’s plan represents a major expansion of his energy ambitions beyond Nigeria, where his existing refinery has become a major refining hub.
If completed as planned, the Lamu refinery would give East Africa a large-scale domestic refining facility while creating an ownership structure involving several regional governments.
