KAMPALA, October 4, 2026 — The African Export-Import Bank [Afreximbank] has backed the development of Kenya’s planned US$16 billion Lamu oil refinery, saying the project could expand Africa’s refining capacity, strengthen regional energy security and increase the continent’s trade in value-added products.
Afreximbank congratulated the Government and people of Kenya, led by President William Samoei Ruto, on the groundbreaking of the Dangote oil refinery in Lamu.
The refinery is planned to process 700,000 barrels of crude oil per day and is expected to create about 60,000 jobs. Its planned regional ownership and market reach are expected to position it as a major East African industrial asset.
The refinery is also expected to process crude from African producers, including Uganda, while supplying refined petroleum products to Kenya and other markets in the region.
Afreximbank said large-scale refining capacity could help retain more value within Kenyan and African economies, deepen local industrial supply chains, create employment and related services, reduce dependence on imported refined products and open new opportunities for regional exports.
The project comes amid renewed concerns over Africa’s energy security following disruptions affecting the Strait of Hormuz and continuing instability around the Red Sea and Bab el-Mandeb.
Afreximbank said the disruptions had highlighted the vulnerability of African economies that rely heavily on distant supply chains for strategic commodities, making increased refining capacity important to industrialisation, intra-African trade and economic resilience.
George Elombi, President and Chairman of the Board of Directors of Afreximbank, said the project demonstrated Africa’s capacity to develop major industrial assets.
“The significance of this investment extends well beyond the construction of a refinery. It demonstrates Africa’s capacity to conceive, finance and build major industrial assets that respond directly to the needs of our economies,” Elombi said.
“By refining more of what we produce on the continent, we retain greater value from our natural resources, create jobs and strengthen the trade links between African economies.”
Elombi said recent disruptions to global energy and shipping routes had highlighted the risks associated with dependence on external supply chains.
“Africa has the capital, the enterprises and the markets to reduce that exposure. Investments such as this give us the productive capacity to shorten supply chains, conserve foreign exchange, strengthen regional energy security and build greater resilience into our economies,” he said.
The Lamu refinery project comes as Kenya expands its industrial and trade infrastructure, with Afreximbank providing financing for several projects in the country.
In 2023, Afreximbank launched a US$ 3 billion Country Programme for Kenya to support public- and private-sector projects covering industrial development and export manufacturing, climate adaptation and irrigation, trade infrastructure, small and medium-sized enterprises, and initiatives aimed at connecting Kenyan businesses to regional and continental markets.
The programme includes an US$ 800 million Kenya Climate Change Adaptation Facility to support irrigation development and agricultural productivity.
Afreximbank is also working with the Government of Kenya and ARISE Integrated Industrial Platforms [Arise IIP] to support the development of the Dongo Kundu Integrated Industrial Park in Mombasa and Naivasha Special Economic Zone II.
About US$1 billion has been earmarked for the two industrial parks, which are expected to support export manufacturing, attract investment and strengthen Kenya’s role as an industrial and logistics gateway to East and Central Africa. Government projections have linked the developments to about 140,000 jobs when fully developed.
The bank has also expanded its support for the Vipingo Special Economic Zone in Kilifi County.
In 2025, Afreximbank and KCB Group announced an US$ 800 million financing framework, comprising US$ 500 million from Afreximbank and US$ 300 million from KCB, to support companies establishing operations in the zone.
Afreximbank had previously disbursed US$ 40 million towards development of the special economic zone. The financing is targeting enterprises in manufacturing, agro-processing, logistics and other value-addition sectors.
The bank also commended Aliko Dangote, President and Chief Executive of Dangote Industries Limited, and the Dangote Group for its investments in Africa’s industrial development.
Afreximbank and Dangote Group have maintained a longstanding financing partnership focused on industrialisation, value addition and expanding Africa’s productive capacity.
Since 2015, Afreximbank has invested about US$ 15 billion in the Dangote Group, including financing for the Dangote Petroleum Refinery and Petrochemicals Complex in Nigeria.
In 2025, the bank signed a US$ 1.35 billion financing facility as part of an approximately US$ 4 billion syndicated financing for Dangote Industries Limited.
In 2026, Afreximbank subsequently underwrote US$ 2.5 billion of a US$ 4 billion senior syndicated term loan for the refinery, giving it the largest participation in the syndicate.
Since refining operations began, Afreximbank has also provided a US$ 1 billion working-capital facility and served as financial adviser on the Naira-for-Crude initiative.
The bank said the financing formed part of a wider effort to develop an African market for African-refined petroleum.
In 2025, Afreximbank established a US$3 billion Revolving Intra-African Oil Import Financing Programme, designed to facilitate between US$ 10 billion and US$ 14 billion in intra-African petroleum imports and enable African buyers to source more refined products from refineries operating on the continent.
Elombi said African companies such as Dangote Industries could play a growing role in developing regional value chains.
“Afreximbank has been proud to support the Dangote Group’s industrial expansion, including its major refining investment in Nigeria,” he said.
“Its decision to extend that industrial footprint into East Africa is important because Africa’s transformation will increasingly depend on African enterprises investing across our borders, African financial institutions supporting them and governments creating the conditions in which those investments can succeed.”
Afreximbank said the development of competitive African companies and regional value chains would be important to the implementation of the African Continental Free Trade Area.
The bank said projects such as the Lamu refinery, together with Kenya’s industrial parks and special economic zones, could support a shift away from exporting unprocessed commodities and importing manufactured goods towards greater production, processing and trade within Africa.
https://thecooperator.news/afreximbank-issues-us29mln-guarantee-to-scale-eac-customs-bond/
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