Ruto, Dangote Break Ground on Sh2.2 Trillion Lamu Refinery
The groundbreaking ceremony was attended by several African heads of state and senior government delegations, underlining the regional interest in the project.
President William Ruto [Right] and Nigerian businessman Aliko Dangote [Left] presiding over the groundbreaking of a Sh2.2 trillion ($16 billion) oil refinery in Lamu, marking the start of one of Kenya's largest planned industrial investments. Photo: President William Ruto.
By Robert Mutasi
President William Ruto and Nigerian businessman Aliko Dangote have presided over the groundbreaking of a Sh2.2 trillion ($16 billion) oil refinery in Lamu, marking the start of one of Kenya’s largest planned industrial investments.
The Dangote East Africa Petroleum Refinery is designed to process 700,000 barrels of crude oil per day, with the finished facility expected to serve Kenya and markets across East and Central Africa. The project is scheduled for completion by 2030, according to Reuters.
Ruto said the investment would strengthen Kenya’s energy security, reduce dependence on imported petroleum products and support the country’s industrialisation agenda.
The groundbreaking ceremony was attended by several African heads of state and senior government delegations, underlining the regional interest in the project.
The refinery is expected to produce petrol, diesel and aviation fuel, with earlier project details indicating daily output of more than 100 million litres. It is also expected to supply markets in Ethiopia, South Sudan, Uganda, Tanzania, Rwanda, Burundi and the Democratic Republic of Congo.
Ruto said the project would have a wider economic impact beyond petroleum refining. The planned industrial complex will include a 1,000-megawatt power plant, as well as facilities for manufacturing plastics, fertilisers and chemicals.
The President said the investment could increase Kenya’s economic output by 12 per cent and attract an additional $4 billion in foreign direct investment annually during the four-year construction period.
The project is also expected to create about 60,000 direct jobs while developing technical skills and supporting businesses linked to construction, manufacturing, logistics and energy.
Dangote has described the refinery as a gateway to broader investment, saying the facility could attract companies seeking to establish businesses around petroleum products and related industries.
The project is being developed at Lamu Port, forming part of the wider Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor. The government hopes the refinery and associated industries will help transform the corridor into a major regional industrial and logistics centre.
Construction preparations were already under way before the groundbreaking. The Kenya Ports Authority reported that 2,930 metric tonnes of construction equipment arrived at Lamu Port aboard the MV Da Yang on September 26.
The project, however, has faced opposition from some residents in Lamu. More than 130 Chandavai residents have moved to court over claims that development activities could displace families from ancestral land without adequate compensation or a resettlement plan.
The legal dispute remains part of the wider debate surrounding the refinery as Kenya begins preparations for construction.
For the government, the project represents a push to move the country from importing refined petroleum products towards greater domestic refining capacity and industrial production.
Ruto said the investment was part of a broader effort to ensure African countries add value to their natural resources, create jobs locally and retain more economic value within the continent.
The Lamu refinery is expected to become Dangote Group’s largest refining investment outside Nigeria and one of the biggest industrial projects planned for East Africa.
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