Aliko Dangote told Nairobi investors on 29 September that the planned Lamu refinery will list on the Nairobi Securities Exchange (NSE). Separately, Renaissance Capital outlined a plan that would let Kenyan investors buy into the Dangote Petroleum Refinery IPO in Nigeria through Global Depositary Receipts (GDRs) traded on the NSE.
Dangote spoke at the NSE at an investor engagement the exchange convened. Renaissance Capital attended for a transaction advisory consortium that includes G&A Advocates LLP, Stanbic Bank Kenya, Renaissance Capital Africa, Image Registrars, KSTB, Phanice Global and Newmark Group.
Dangote commits the Lamu refinery to the NSE
Dangote rejected a New York listing for the Lamu refinery. “If the Lamu refinery has to be listed, it should be on the NSE,” he said. “This is an African company. It should benefit Africans.”
He later repeated the position as a commitment: “The East African refinery will be listed at the Nairobi Securities Exchange.”
Bob Karina, chairman of Faida Investment Bank, asked Dangote to cross list Dangote Petroleum Refinery shares in Nairobi. Dangote said a secondary listing is “something that we’ll definitely look at.”
Kenyan investors would hold receipts, not Nigerian shares
A GDR lets an investor hold an interest in a foreign company through the investor’s home market. A custodian bank holds the shares in the company’s home country. A depositary issues receipts that represent those shares, and the receipts trade on a local exchange.
Under the proposal, Stanbic Bank Kenya would hold the Dangote shares in Nigeria. Kenyan investors would buy and sell the receipts on the NSE in Kenyan shillings, through licensed brokers, at normal commissions. Dividends and rights issues pass through to holders. The Nigerian Exchange (NGX) stays the main market for the shares.
The structure is unsponsored, which means regulated institutions set up the programme and Dangote Petroleum Refinery does not. Renaissance Capital would collect Kenyan applications and submit one aggregate application in the Nigerian offer. It would then issue GDRs against the shares it receives.
| Participant | Role |
|---|---|
| Renaissance Capital | Lead transaction adviser, sponsoring broker and GDR issuer |
| Stanbic Bank Kenya | Holds the Nigerian shares in custody and supports issuance |
| Licensed Kenyan stockbrokers | Authorised selling agents who collect orders and run KYC and investor checks |
| Image Registrars | Registrar for the receipts |
| G&A Advocates LLP | Legal and regulatory adviser |
| Nairobi Securities Exchange | Convened the forum and would host trading |
The issuer would set final allocations under a published methodology.
Renaissance Capital Chairman David Kinyua said the programme is expected to target up to US$300 million from Kenyan investors. Subject to approvals and final terms, he said it would be the first unsponsored inward GDR programme of its kind in Africa.
NSE Chief Executive Frank Mwiti said the instrument creates a route for local institutional and retail capital to take part in African assets on the NSE, traded and settled in shillings.
Renaissance Capital Managing Director Stanley Kariuki said a Kenyan investor seeking a Nigerian share has had to deal with another market, another currency and another set of arrangements. He said the GDR would put the instrument on the NSE and give access through local infrastructure.
G&A Advocates Managing Director Eric Gumbo said the firm sees Kenya’s policy and legal framework as ready to support the structure.
Timeline depends on regulatory approval
| Stage | Date |
|---|---|
| CMA and NSE filing | 28 September to 2 October |
| Offer period | 5 to 13 October |
| Allotment | Around 11 November |
| Settlement | 12 November to 2 December |
| NSE listing and trading | Targeted for 8 December 2026 |
The programme remains subject to regulatory approvals, documentation, investor demand and final terms.
Capital Markets Authority Chairman Mohammed Ali said the regulator has received daily inquiries from investors since the Nigerian offer opened on 14 September. He said GDRs, “if structured right,” can provide access, subject to disclosure and conduct rules.
Offer terms in Nigeria
Dangote Petroleum Refinery is offering 4.1 billion ordinary shares on the NGX at NGN525 each. The base offer is NGN2.15 trillion, about US$1.5 billion. It can rise to US$2.05 billion with a 30% allotment. The offer opened on 14 September and closes on 13 October.
Group Chief Financial Officer Murat Arden confirmed the closing date. Kariuki said the Kenyan listing would follow the Nigerian one.
Dangote says Lamu will finish before Uganda’s refinery
Dangote said Lamu will be completed before Uganda’s proposed refinery. “By the time we finish this refinery in Lamu, it will be the fastest refinery to be built,” he said. He added that he expects little physical progress on the Ugandan project by the time Lamu starts operating.
Uganda selected Alpha MBM Investments of the United Arab Emirates to build a 60,000 barrel per day refinery in Hoima. Alpha MBM takes 60% and the state oil firm UNOC keeps 40%. The refinery is valued at about US$4 billion, within an oil development of about US$10 billion.
Dangote said an Emirati group announced the Uganda investment two to three years ago. “I’m not saying that I wish anybody bad,” he said. “Let us be very careful of people coming to give us a high hope and eventually they are not going to come and do anything.”
Lamu power, jobs and legal challenges
Dangote said the Lamu complex will generate about 1,000MW. The refinery will use about 450MW and hold 50MW in reserve. The remaining 500MW is to be sold to the Kenyan government under an agreement being signed. “There will not be any lack of power in Lamu,” he said.
He said the business is denominated in dollars, which limits devaluation risk, and that Dangote pays dividends in dollars. The project needs up to 60,000 workers at peak construction, and equipment is already on site.
Africa Finance Corporation Chief Executive Samaila Zubairu told the forum that Uganda’s Yoweri Museveni is among the East African leaders who backed the project in April. Zubairu put regional demand for finished fuel at about 20 million metric tonnes a year.
Residents of Lamu have sued to halt groundbreaking. Dangote has said a court order will not stop the groundbreaking. Khusoko has also reported on the valuation behind the Dangote refinery IPO.
