Nigerian billionaire Aliko Dangote and Kenya's President William Ruto have launched a $16bn oil refinery in Lamu, Kenya's northern coast. The refinery, expected to process 700,000 barrels of crude oil a day, will be East Africa's largest industrial project by capacity. The project was launched on October 1, 2026, and is expected to be completed by 2030. The refinery's construction was attended by leaders of Uganda, Ethiopia, Togo, and Benin.
Local residents protested the project, demanding more compensation for land used for the refinery. Dangote dismissed the protests, saying they were "games played by local marketers and international players." He insisted the refinery would proceed as planned. The company offered regional governments a combined 30% stake in the refinery. Dangote said the project marked a new chapter in Africa's industrial journey.
The refinery is Kenya's largest infrastructure project since independence, surpassing the $5.1bn Standard Gauge Railway. Dangote's company took only the portion of land needed from what the government made available. He disputed compensation claims, asking, "Have you ever seen people demonstrating against themselves in terms of development?" The project will create 60,000 jobs at its peak construction.
Critics questioned building the refinery in Kenya, which is not an oil-producing country. Others suggested Tanzania or Uganda, which are moving towards oil exports through the East African Crude Oil Pipeline. Walid Ali, co-founder of the Save Lamu campaign group, expressed concerns about the project's environmental impact on the local community.
Ali's group is requesting findings from the environmental impact assessment to see what mitigation measures are proposed. They are concerned that environmental concerns may be overlooked, as in previous projects. Dangote said the benefits of the project would extend beyond those directly employed.
The refinery will be the only one in East Africa. Dangote referenced his Nigerian refinery, saying, "Lekki proved that it can be done, Lamu must prove that it can be repeated." The project's launch was seen as a significant moment for African industrial development.
The project's impact on the local community and environment will be closely watched. With 60,000 jobs expected at its peak, the project is a significant investment in the region. The refinery's completion is expected to have far-reaching effects on East Africa's industrial landscape.
Key points
- The refinery is expected to process 700,000 barrels of crude oil a day.
- The project was launched on October 1, 2026, and is expected to be completed by 2030.
- The refinery will create 60,000 jobs at its peak construction.
