Engineers India wins $450 million deal for Dangote’s 700,000-bpd Kenya refinery after helping build Africa’s largest refinery

Aliko Dangote has hired the Indian engineers behind his Lagos refinery to provide project management and engineering consultancy services for a planned 700,000-barrel-per-day refinery and petrochemical complex in Kenya.

• Aliko Dangote has contracted Indian engineers from Engineers India Ltd. to manage and consult on a massive new refinery and petrochemical complex in Kenya.
• Engineers India will leverage its expertise gained from Dangote's flagship Lagos refinery.
• Dangote Group, already active in 17 African countries, aims to reduce East Africa’s reliance on imported petroleum by boosting regional refining capacity and supporting energy security.
• As Dangote grows his operations in Kenya, he's also opening up his Nigerian refinery to outside investment, launching a public offering to attract $1.6 billion and diversify ownership among African shareholders.

Aliko Dangote has hired the Indian engineers behind his Lagos refinery to provide project management and engineering consultancy services for a planned 700,000-barrel-per-day refinery and petrochemical complex in Kenya.

Engineers India Ltd., which is majority-owned by the Indian government, signed a $450 million agreement with Dangote for the project, which will be located in Lamu on Kenya’s coast, according to a filing on the Mumbai Stock Exchange.

The deal gives Engineers India a key role in another major Dangote energy project after working on the billionaire’s flagship refinery in Lagos. The firm is also involved in the ongoing expansion of the Nigerian facility, which is expected to increase its capacity from 700,000 barrels per day to 1.4 million barrels.

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Expanding into East Africa

The Kenyan project is part of Dangote Group’s broader expansion across Africa. The conglomerate, which operates in 17 African countries, is seeking to establish a larger refining and petrochemical footprint while reducing the region’s reliance on imported petroleum products.

“Once completed, this project will be critical in strengthening fuel production within East Africa, reducing reliance on imports, and supporting regional energy security,” Engineers India said.

The company added that the refinery would also supply petroleum products to international markets.

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Opening up the Nigerian refinery

The Kenya expansion comes as Dangote moves to bring outside investors into the ownership of its Nigerian refinery.

The refinery opened its initial public offering on September 14, seeking to raise about $1.6 billion through the sale of 4.1 billion ordinary shares at ₦525 each. The offer closes on October 13, with the shares expected to begin trading on the Nigerian Exchange in November.

Before the IPO, a private placement attracted $3.7 billion in demand. Dangote said the company ultimately took $2.5 billion, choosing not to accept the full demand as it sought to broaden ownership of the refinery among African investors.

The Nigerian facility is already one of the world's largest single-train refineries. Its planned expansion to 1.4 million barrels per day would further increase its scale, while the Kenya project would extend Dangote’s refining ambitions into East Africa.

Together, the projects show how the group is seeking to use its experience in building and operating the Lagos refinery to establish a broader energy and petrochemical presence across the continent.