Kenya Airways, Rubis Plan $82 Million SAF Refinery To Cut African Aviation Emissions

Kenya Airways and Rubis Energy Kenya plan to develop Africa’s first dedicated sustainable aviation fuel refinery, with annual capacity of 32,000 metric tonnes.
The project is expected to cost €60 million to €70 million, equal to about $70.5 million to $82.2 million.
The refinery could help African airlines meet rising SAF requirements, but financing, feedstock rules and regulatory recognition remain critical hurdles.

Nairobi is positioning itself at the centre of Africa’s aviation decarbonisation push after Kenya Airways and Rubis Energy Kenya signed an agreement to develop what they describe as the continent’s first dedicated sustainable aviation fuel refinery.

The memorandum of understanding was announced during the Africa Forward Summit in Nairobi. Kenyan President William Ruto and French President Emmanuel Macron attended the signing as part of wider Kenya-France agreements covering transport, renewable energy, logistics, agriculture, digital transformation and climate cooperation.

The planned refinery is expected to produce 32,000 metric tonnes of sustainable aviation fuel each year. Estimated investment costs range from €60 million to €70 million, or about $70.5 million to $82.2 million.

For Kenya Airways, the project gives shape to a larger fuel strategy. It also places the carrier closer to the supply chain needed to meet tightening global aviation emissions rules.

Why SAF Matters For African Aviation

Sustainable aviation fuel is produced from renewable feedstocks, including agricultural residues, waste oils and non-food energy crops. The aviation sector views it as one of the few practical near-term tools for cutting emissions from long-haul flights.

That matters because aviation still has few commercial alternatives at scale. Battery-electric aircraft remain limited for long-distance routes. Hydrogen faces infrastructure and technology barriers. As a result, SAF has become central to airline climate planning.

Global aviation accounts for roughly 2% to 3% of worldwide carbon dioxide emissions. Regulators are now moving faster to require airlines to blend cleaner fuels into their operations.

The European Union’s ReFuelEU Aviation rules require rising SAF blending levels for flights departing European airports. Similar policies are emerging in other markets. Together, they are changing how international carriers plan fuel procurement, pricing and compliance.

For African airlines, the challenge is more difficult. SAF remains expensive, local production is limited and refining infrastructure is scarce. That has left carriers exposed to imported fuel costs and regulatory systems designed mainly around European supply chains.

Kenya Airways Builds On Earlier SAF Flights

Kenya Airways has become one of Africa’s most active airlines in SAF deployment. In 2023, it became the first African carrier to operate a long-haul flight using SAF on its Nairobi-Amsterdam route. The flight used Biojet fuel supplied by Eni Sustainable Mobility.

The airline then expanded SAF use on selected routes. From October 2025, it began using blended SAF on flights to Paris, London, Amsterdam and Cape Town. The fuel was derived from non-food crops grown in Kenya’s Kwale County, on land previously degraded by mining.

Kenya Airways has set a target for SAF to account for 10% of its total fuel consumption by 2030. It has also been selected as the sole African airline leading the International Air Transport Association’s SAF Registry initiative.

That registry uses a book-and-claim model. It allows airlines to buy SAF credits even when the fuel is produced or used elsewhere, then claim the related emissions reductions.

Financing And Rules Will Decide The Outcome

The Kenyan refinery now enters its most complex phase. Feasibility work, financing and regulatory alignment will determine whether the project becomes a bankable industrial asset.

SAF costs far more than conventional jet fuel because production is still limited. Feedstock supply is also difficult to scale. Refining requirements add another layer of cost.

For investors, the refinery’s commercial case may depend on concessional finance, blended capital and long-term fuel offtake commitments. Policy certainty will also matter.

A key concern is how international regulators treat SAF produced outside Europe. Current European and UK rules often require SAF to be physically delivered to aircraft at European airports for compliance under blending mandates.

African carriers argue that this disadvantages emerging-market producers. It can weaken the business case for building SAF capacity in Africa, even when the fuel cuts emissions and supports local industrial development.

Kenya Airways has backed wider use of book-and-claim systems. Such systems would allow SAF produced and used in Africa to count toward international emissions obligations without requiring physical delivery into European airports.

A Test Case For Green Industrialisation

Kenya has several advantages as a potential SAF hub. It has agricultural feedstock potential, a strategic aviation location and a growing renewable energy base supported by geothermal, wind and solar power.

The project also fits Kenya’s wider effort to attract climate-linked industrial investment. For Rubis, it extends the company’s role in East Africa’s energy transition market as French firms deepen infrastructure and clean energy ties with Kenya.

If completed, the refinery could supply Kenya Airways and other African carriers operating routes affected by international emissions rules. It could also give Kenya an early position in a market expected to grow as airlines face greater pressure from regulators, investors and customers.

The test now is execution. The refinery will need credible feedstock standards, patient capital, supportive policy and recognition under global carbon compliance systems. If those pieces align, Kenya could turn aviation decarbonisation into a regional industrial opportunity.