Kenya Airways (NSE: KQ) and Rubis Energy Kenya have signed a Memorandum of Understanding (MOU) to develop a sustainable aviation fuel (SAF) refinery in Nairobi, a project the companies said would be Africa’s first dedicated SAF facility. The companies announced the agreement on 12 May 2026 in Nairobi, saying the facility will be sited near Jomo Kenyatta International Airport (JKIA) to connect production with existing fuel infrastructure and airline demand.

In a joint statement, the partners said the MOU sets the framework for “joint engineering, financing, and operation” of a facility designed to produce lower-carbon aviation fuel using local waste feedstocks. The signing was witnessed by President William Ruto and French President Emmanuel Macron during the Africa Forward Summit, according to the news release.

The project will use Dragonfly’s modular refinery technology to process feedstocks including used cooking oils, waste animal fats and other vegetable oils, the companies said. The planned facility is expected to have a production capacity of 32,000 tonnes and requires an estimated investment of about KES 8.4–9.8 billion (€60–70 million), based on figures provided in the release.

The announcement comes as airlines and fuel suppliers globally face increasing regulatory and investor pressure to cut emissions, with SAF widely viewed as an important near- to medium-term option for reducing aviation’s carbon footprint. For Kenya, a local SAF supply chain would also touch multiple sectors, including waste collection and processing, logistics, manufacturing, and airport fuel distribution.

Kenya Airways Acting Group Managing Director and CEO George Kamal linked the project to aviation decarbonisation and current fuel consumption at JKIA. “The expansion of air transport is linked to a growing share of global greenhouse gas emissions. Currently, Jomo Kenyatta International Airport consumes 2.9 million litres of jet fuel every day, an amount equal to filling the tanks of 52,727 family cars,” Kamal said.

Kamal said the airline currently relies on imported jet fuel and framed the proposed refinery as a way to produce an alternative locally. “While we currently depend entirely on imports, this refinery allows us to produce a sustainable, local version of that fuel,” he said, adding that SAF would support the International Civil Aviation Organization (ICAO) net-zero CO₂e emissions target by 2050.

Rubis and Dragonfly said the project will include skills development and a target timeline for commissioning. Jean-Christian Bergeron, Co-Managing Partner of Rubis and CEO of Rubis Énergie, said, “Our priority will be technology transfer and ensuring that training is provided for local skills development so that the facility, and associated supply chains, will be operated and managed by Kenyans.”

Dragonfly intends to bring the facility online within 24 months, according to the release. Karl W. Feilder, CEO of Dragonfly, said, “The critical advantage of this project is that a Dragonfly refinery can be sited close to both the feedstock and the consumers of the fuel, and utilise the existing Rubis infrastructure to provide a long-term daily supply of SAF to Kenya Airways at Jomo Kenyatta International Airport.”

If executed, the refinery could position Nairobi as an early SAF production hub in East Africa, with implications for airline operating costs, supply security, and the development of a formal market for waste oils and fats. However, key details—such as final investment decision timing, project ownership structure, feedstock supply contracts, pricing, and regulatory approvals—were not disclosed in the statement.

The partners said the MOU provides the basis for engineering and financing work to proceed. The next milestones will include detailed project development, securing funding, and concluding arrangements for feedstock supply and offtake, as the proponents work toward the 24-month commissioning target cited by Dragonfly.