{"id":39011,"date":"2026-07-07T17:04:58","date_gmt":"2026-07-07T15:04:58","guid":{"rendered":"https:\/\/www.channelafrica.co.za\/channelafrica\/?post_type=news&#038;p=39011"},"modified":"2026-07-07T17:04:58","modified_gmt":"2026-07-07T15:04:58","slug":"dangote-to-fund-proposed-kenya-refinery-with-cash-bonds-ipo","status":"publish","type":"news","link":"https:\/\/www.channelafrica.co.za\/channelafrica\/news\/dangote-to-fund-proposed-kenya-refinery-with-cash-bonds-ipo\/","title":{"rendered":"Dangote to fund proposed Kenya refinery with cash, bonds, IPO"},"content":{"rendered":"<div dir=\"ltr\" data-olk-copy-source=\"MessageBody\">Nigeria&#8217;s Dangote Group plans to finance a proposed 700 000-barrel-per-day oil refinery in Kenya through internal cash flow, bonds \u200band an initial public offering, a senior company executive told \u200c<i>Reuters<\/i>.<\/div>\n<div id=\"x_ms-outlook-mobile-signature\">\n<div>\nThe refinery, East Africa&#8217;s largest refining project, is expected to take up to three years to build and would supply refined petroleum products to Kenya and \u200bneighbouring countries, helping to reduce East Africa&#8217;s dependence on imported fuels.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">It \u200bwould also fulfil Dangote&#8217;s ambition to expand fuel-processing capacity \u2060across Africa following the start-up of its 650 000-barrel-per-day refinery in Lagos.<\/div>\n<div>&#8220;The site \u200bhas been selected, soil tests are under way, and design and engineering \u200bwork has commenced. Kenya was the choice from the beginning,&#8221; Edwin Devakumar, Dangote Industries&#8217; vice president for oil and gas, told\u00a0<i>Reuters<\/i>.<\/div>\n<div dir=\"ltr\"><\/div>\n<div>The refinery, which would be built \u200bon the island of Lamu, off the coast of Kenya, would \u200bmark Dangote Group&#8217;s biggest refining investment outside Nigeria.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Devakumar said the refinery would be financed \u200cthrough \u2060a mix of internally generated cash, bonds and proceeds from a planned initial public offering. He did not disclose the project&#8217;s exact cost, but said it would be comparable to that of the Lagos refinery.<\/div>\n<div dir=\"ltr\">\nBuilt \u200bby Aliko Dangote, \u200branked as Africa&#8217;s \u2060richest man by Forbes, the Lagos refinery had cost more than $20 billion by the time it began \u200boperating in 2024.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">The initial estimate had been about $9 billion \u200bin 2013, \u2060but the cost was driven up by a site relocation, engineering challenges, currency weakness, the COVID-19 pandemic and global inflation.<\/div>\n<div dir=\"ltr\">\nDangote has for months expressed \u2060interest \u200bin building a major refinery in East \u200bAfrica. The company previously considered Tanzania&#8217;s port city of Tanga before switching to Kenya, citing \u200binfrastructure, logistics and market considerations.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">&#8211;Reuters&#8211;<\/div>\n<div dir=\"ltr\"><\/div>\n<\/div>\n","protected":false},"featured_media":32664,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-39011","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Dangote has for months expressed \u2060interest \u200bin building a major refinery in East \u200bAfrica","published_date":"","news_description":"Dangote has for months expressed \u2060interest \u200bin building a major refinery in East \u200bAfrica","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39011\/revisions"}],"predecessor-version":[{"id":39012,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39011\/revisions\/39012"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/32664"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=39011"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=39011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}