Lamu refinery: Kenya ready to grant Aliko Dangote fuel monopoly?
Kenya is negotiating a fuel supply agreement with Aliko Dangote, who has launched a mega-refinery project in Lamu. Nairobi is weighing whether to grant Dangote exclusivity over the domestic fuel market or only part of it, in order to preserve diversification of supply sources. The government is seeking an agreement balancing the expected benefits of the Lamu refinery against the risk of a monopoly.
Why it matters: The talks bear on energy security, as Kenya weighs supply diversification against the price and efficiency effects of a single fuel supplier.