Nigeria's Dangote Group plans to finance a proposed 700,000-barrel-per-day oil refinery in Kenya through internal cash flow, bonds and an initial public offering, a senior company executive told Reuters.
The refinery, East Africa's largest refining project, is expected to take up to three years to build and would supply refined petroleum products to Kenya and neighbouring countries, helping to reduce East Africa's dependence on imported fuels.
It would also fulfil Dangote's ambition to expand fuel-processing capacity across Africa following the start-up of its 650,000-barrel-per-day refinery in Lagos.
"The site has been selected, soil tests are under way, and design and engineering work has commenced. Kenya was the choice from the beginning," Edwin Devakumar, Dangote Industries' vice president for oil and gas, told Reuters.
The refinery, which would be built on the island of Lamu, off the coast of Kenya, would mark Dangote Group's biggest refining investment outside Nigeria.
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