Kenyans are expected to get an opportunity to invest in Dangote’s planned East Africa refinery in Lamu. President William Ruto made this exciting announcement on September 29, just before the groundbreaking ceremony set for the following day.
He emphasized that the government will also take a stake in the refinery, ensuring that ordinary citizens can buy shares through the Nairobi Securities Exchange (NSE).
Ruto highlighted the commitment to making this investment accessible and transparent, stating that it will not be limited to a select few wealthy investors. Instead, the refinery aims to include more people in the process, opening the door for average citizens to be part of this significant project.
With an estimated cost of KSh2 trillion (about ₦20.5 trillion), the refinery will have an impressive capacity to process 700,000 barrels of crude oil per day. This project is positioned to play a crucial role in supplying refined petroleum products not only to Kenya but also to other East African countries, marking a significant step towards regional economic development.
Similar read: 18 platforms where you can buy Dangote Refinery’s IPO shares
How Kenyans could buy shares in Dangote’s Lamu refinery
Kenyan President William Ruto recently announced that the government will take a stake in a new oil refinery being built in Lamu, with plans to offer shares to the public through the Nairobi Securities Exchange (NSE). This means that everyday Kenyan investors will have the opportunity to become part owners of the refinery through the stock market. However, details about the share allocation, pricing, and timeline for this offering are still pending.
The refinery project, spearheaded by Nigerian business magnate Aliko Dangote, is poised to be a significant investment in East Africa. Dangote has committed to listing the refinery on the NSE, providing local investors with a direct chance to participate in this ambitious venture.
This Lamu refinery project is distinct from Dangote’s ongoing massive initial public offering (IPO) for his Nigerian refinery, which has raised considerable attention. That IPO involves 4.1 billion shares of the Dangote Petroleum Refinery & Petrochemicals FZE, priced at ₦525 per share on the Nigerian Exchange. Interestingly, Kenyan investors are also exploring ways to access this Nigerian investment through a Global Depositary Receipt (GDR) program on the NSE.
See also: Fintechs blame ‘unexpected traffic’ for Dangote IPO outages; banks say they saw it coming
The refinery is targeted for completion by 2030 and will supply petroleum products to Kenya and other East African countries. With this project, Dangote Group aims to establish its largest refining investment outside of Nigeria. Preparations are already in full swing, with nearly 3,000 tonnes of heavy machinery and construction materials recently arriving at the Port of Lamu ahead of the groundbreaking.
However, the project has encountered challenges. Some residents have raised legal concerns regarding land rights and possible displacement. A court has ordered that certain parts of the site should maintain their current status while these issues are addressed. Despite these hurdles, Dangote remains optimistic, assuring that the legal dispute will not prevent the commencement of construction, although it might impact certain site activities.
For Kenyan investors, the forthcoming NSE listing offers a potential gateway to turn this ambitious multitrillion-shilling refinery project into a tangible investment opportunity. As the project unfolds, it holds the promise of making a significant impact on the region’s economy and energy landscape.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!
