Afreximbank Backs Dangote as $16B Lamu Refinery Moves Ahead

Afreximbank has backed the planned $16 billion Dangote refinery in Lamu, deepening a financing relationship with the Nigerian conglomerate as Kenya moves ahead with the project.

The bank said its support for Dangote Group extends to the Lamu refinery, which broke ground in late September. Afreximbank has also disclosed that it has supported Dangote Group with about $15 billion since 2015.

The numbers show why the project is attracting attention across Africa. The refinery is planned to process 700,000 barrels of crude a day and create about 60,000 jobs, according to Afreximbank. citeturn0news12

A bigger financing relationship

Afreximbank's relationship with Dangote is broader than the Kenyan project. The bank said it supported the Nigerian conglomerate with about $15 billion since 2015, including financing linked to Dangote's Nigerian refinery.

The bank also said it underwrote $2.5 billion of a $4 billion senior syndicated loan for the Nigerian refinery in 2026. That history gives context to its involvement as Dangote expands into East Africa. citeturn0news12

For Kenya, the issue is not only the size of the investment. A functioning refinery could eventually change the way the country and neighbouring markets source refined petroleum products.

What Kenya could gain

The proposed Lamu refinery is designed to produce refined fuel for Kenya and other East African markets. Afreximbank said the project could strengthen industrial supply chains, create jobs and support regional exports.

The bank also pointed to its wider Kenya programme. It launched a $3 billion country programme in 2023 covering industrial development, export manufacturing, trade infrastructure, climate adaptation, irrigation and support for small businesses. citeturn0news12

Those potential gains depend on execution. The Lamu project has faced legal and environmental scrutiny, so financing support alone does not guarantee that the refinery will be completed on schedule.

Milestones worth watching

The next milestones are construction, financial close and progress on the project's legal and environmental requirements.

If the refinery is completed as planned, its 700,000-barrel-a-day capacity would make it a major new industrial asset for East Africa. If delays persist, the economic benefits, including jobs, fuel supply and regional trade, would take longer to materialise.

For businesses and investors, the key development this week is that Afreximbank has publicly linked its longstanding Dangote financing relationship to the Lamu project. That adds financial weight to a project whose wider impact will depend on execution.