Amanze Chinonye
Kenya has increased its shareholding in the Africa Finance Corporation (AFC) by $25 million (3.25 billion shillings), President William Ruto said on Saturday during a visit to the pan-African lender’s headquarters in Lagos, as Nairobi seeks financing for major infrastructure and industrial projects, Prime Business Africa reports.
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Ruto said Kenya was supporting African financial institutions and highlighted AFC’s regional office in Nairobi, the corporation’s first outside Nigeria. AFC opened the office in April as part of an expansion across East Africa and has committed more than $1.3 billion to projects in Kenya, including the Dongo Kundu Integrated Industrial Park and Naivasha Special Economic Zone.
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Ruto, Dangote Discuss Financing for $17 Billion Kenya Refinery Project
Ruto’s visit to Lagos also included a tour of the Dangote Petroleum Refinery in Lekki, ahead of the planned groundbreaking next week for the Dangote East African Refinery in Lamu, Kenya. He said the Nigerian facility showed what African governments, investors and financial institutions could achieve through cooperation.
The Lagos refinery has a current crude-processing capacity of 700,000 barrels per day and produces more than 100 million litres of petrol, diesel and aviation fuel daily, according to Dangote and Ruto. The company has also built subsea infrastructure to transport crude from vessels to the refinery.
The proposed Lamu refinery is designed to process about 700,000 barrels per day and is expected to cost between $15 billion and $17 billion. Kenya expects the project to generate about 60,000 jobs and support downstream industries including fertiliser, chemicals and packaging.
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The project, however, faces financing and crude-supply challenges. Dangote plans to use internal funds, bonds and an initial public offering to finance the development, while questions remain over securing enough crude to sustain a refinery of its planned scale.
AFC already has financial ties to Dangote’s Nigerian refinery, having provided $300 million in senior debt and served as co-coordinating bank on a $3 billion syndicated loan. In August, AFC led investors in a $2.5 billion private placement involving Dangote Petroleum Refinery and Petrochemicals, giving the Kenyan project a direct link to the institution’s existing relationship with Dangote.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
