Nigeria’s Dangote Group has awarded a contract worth more than US$450 million (about KSh58 billion) to India’s Engineers India Limited (EIL) for a planned refinery and petrochemical plant in Kenya.
In a statement on September 22, EIL, an Indian state-owned engineering consultancy, said it had been appointed Project Management Consultant (PMC) and Engineering, Procurement and Construction Management (EPCM) Consultant for the project.
According to the company, Dangote is planning a 700,000-barrel-per-day greenfield refinery and petrochemical plant in Kenya as part of its expansion into East Africa.
The project is intended to meet regional fuel demand while allowing Dangote to process a wider range of crude oil.
Once completed, the facility is expected to strengthen fuel production in East Africa and reduce the region’s reliance on imported petroleum products.
The company also said the refinery would supply petroleum products to international markets, giving the project a wider role beyond the regional market.
“Driven by this proven track record of execution leadership, EIL is proud to extend this transformative partnership to Dangote’s upcoming Greenfield Refinery and Petrochemical Plant in Kenya,” stated EIL.
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Indian Firm Expands Partnership with Dangote
EIL already worked with Dangote as the Project Management Consultant and EPCM Consultant for the company’s 650,000-barrel-per-day refinery and petrochemical complex at the Lekki Free Zone in Nigeria.
“Having partnered with the Dangote Group as the Project Management Consultant (PMC) and EPCM Consultant for the successfully commissioned 650,000 BPD Dangote Refinery and Petrochemical Complex at Lekki Free Zone, and further working on its expansion to 1.4 Million barrels per day- a project that is fundamentally reshaping Africa’s energy architecture,” read part of the statement.
The Lekki facility is described by EIL as the world’s largest single-train refinery. The company is also working on its expansion to 1.4 million barrels per day.
EIL said the experience gained from the Nigerian project informed its selection for the planned Kenyan facility.
The Indian firm will now bring its engineering and project management expertise to Dangote’s Kenyan project, which it described as a major greenfield energy development.
EIL said the Kenyan refinery and petrochemical plant will help strengthen fuel production across East Africa and improve regional energy security.
Ruto Courts Investment for $17 Billion Lamu Refinery
The award of a KSh58 billion contract to Engineers India Limited marks a new phase in Dangote Group’s planned expansion into East Africa, with the company moving ahead with its proposed refinery and petrochemical project in Kenya.
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The Indian state-owned firm has been appointed as Project Management Consultant (PMC) and Engineering, Procurement and Construction Management (EPCM) Consultant for the project, which is expected to process 700,000 barrels of crude oil per day.
The project is also expected to create a facility capable of processing crude oil for both regional consumption and global petroleum markets.
The development comes as Kenya advances plans for the proposed 700,000-barrel-per-day refinery and petrochemical plant in Lamu, which Dangote Group is developing at an estimated cost of $17 billion.
President William Ruto is seeking to attract investment for the project during his participation in the 81st United Nations General Assembly in New York. He travelled to the United States on September 20 as part of efforts to market investment opportunities in Kenya across key sectors.
According to State House Spokesperson Hussein Mohamed, President Ruto is scheduled to co-chair investment roundtables organised by the Africa Finance Corporation (AFC) and the Global Africa Business Initiative (GABI) alongside Nigerian businessman Aliko Dangote.
The government has presented the project as an investment that could strengthen energy security and position Kenya as a regional energy hub.
The government has scheduled the project’s groundbreaking ceremony for September 30.
During his visit to the UN General Assembly, President Ruto is also expected to seek investment in other sectors of the Kenyan economy, including energy, manufacturing, agriculture, healthcare, and technology.
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