Rwanda has confirmed that it is in preliminary discussions to acquire a stake in Aliko Dangote’s planned U$16 billion oil refinery in Kenya, signaling growing regional interest in one of East Africa’s most ambitious energy projects.
President Paul Kagame said Monday that talks between Rwanda and the project’s promoters were underway, although no final agreement had been reached.
Speaking at a press conference in Kigali, Kagame described the discussions as a “work in progress” and said Rwanda would welcome the opportunity to participate in the investment.
“We are discussing it. It is still at an early stage, but we would be very happy to be part of that kind of investment,” Kagame said.
The development places Rwanda alongside Kenya and Ethiopia as potential regional investors in the proposed refinery, which is expected to become a major source of refined petroleum products for East African markets.
Kenya’s economic adviser David Ndii disclosed last week that Kenya had been offered a 10 percent stake in the project, valued at about $500 million.
He said Ethiopia and Rwanda had also been invited to participate in a broader regional investment package that could see governments collectively hold about 30 percent of the refinery.
The proposed regional stake is valued at approximately KSh194.2 billion, equivalent to about $1.5 billion.
The Lamu refinery is planned to have a processing capacity of up to 700,000 barrels of crude oil per day, matching the nameplate capacity of Dangote’s refinery in Lagos, Nigeria. Its intended market includes Kenya, Uganda, South Sudan, Rwanda and Ethiopia, with the potential to supply other markets across the region.
The refinery itself is estimated to cost about $16 billion, while the wider development—including port facilities and petrochemical infrastructure—could push total investment closer to $20 billion.
Construction is expected to take between three and five years after groundbreaking. Dangote indicated on August 8 that construction could begin by October, while Ndii later suggested that work could start as early as September, subject to regulatory approvals and other preparations.
For Rwanda, participation in the project could strengthen its energy security and provide greater access to refined petroleum products through regional infrastructure. The country is heavily dependent on imported fuel, making reliable and diversified supply routes strategically important to its economy.
The proposed investment also reflects the growing push for deeper economic integration in East Africa, with governments seeking to develop shared infrastructure and reduce dependence on distant supply chains.
Dangote has previously called on governments to provide a supportive investment environment for the refinery, including access to land, regional financing, stable regulation and protection against what he has described as dumped fuel imports from countries such as Russia and India.
Rwanda’s interest could therefore add political and financial weight to the project while reinforcing its potential role as a regional energy hub.
However, significant hurdles remain before construction can begin, including regulatory approvals, financing arrangements and agreements on crude supply and regional market access.
If the investment discussions progress, Rwanda’s participation would give Kigali a direct financial interest in a major regional energy project while potentially securing a stronger voice in decisions affecting the future supply of petroleum products across East Africa.
