Flag carrier Kenya Airways Plc (NSE:KQ) and Rubis Energy Kenya, a subsidiary of Rubis SCA (EPA: RUI), a French energy group, have signed a memorandum of understanding to develop Africa’s first dedicated sustainable aviation fuel (SAF) refinery, Business Insider Africa reported.

The agreement was signed on May 12 during French President Emmanuel Macron’s visit to Kenya, in the presence of Kenyan President William Ruto, as part of efforts to deepen economic and strategic cooperation between the two countries.

The planned facility, to be built near Jomo Kenyatta International Airport in Nairobi, is expected to produce about 32,000 metric tonnes of SAF annually, with an estimated investment of €60mn to €70mn ($70.5mn to $82.2mn).

Kenya Airways has framed the project as part of its emissions-reduction strategy, as the aviation industry faces mounting pressure to decarbonise and SAF remains in early-stage production globally and in Africa. The International Air Transport Association (IATA) estimates SAF demand could reach 17mn tonnes by 2030, equal to 4–5% of total jet fuel use, while current supply remains below 0.2%.

The project is expected to reduce Africa’s dependence on imported aviation fuels, which currently dominate supply and are mostly limited to pilot projects and small-scale imports, Africa Business Insight reported.

Beyond its environmental impact, the refinery is expected to strengthen Kenya’s position as a regional aviation hub while reinforcing France’s growing role in Africa’s energy transition, with potential to serve both domestic demand and future export markets as SAF demand increases.