Kenya has agreed with Aliko Dangote to invest in a pipeline that will link Turkana to Lamu, enabling the transportation of crude oil from Turkana to Lamu. According to President William Ruto, the pipeline will facilitate the transportation of oil regardless of the initial production volumes. The project is expected to boost Kenya's economy, with the President estimating that the planned facility could represent about 12% of the country's GDP.
The government has secured 9,000 acres in Lamu and plans to acquire an additional 3,000 acres for the project. President Ruto noted that the facility will be constructed on government land and that citizens affected by the project will be compensated if additional land is required. The project also includes plans to establish a Special Economic Zone (SEZ) spanning approximately 5,000 acres.
The investment is expected to help raise foreign direct investment (FDI) to between $6 billion and $7 billion (KSh778 billion - KSh908 billion) next year. President Ruto emphasized that the project will have a significant impact on Kenya's economy and will create new opportunities for growth.
President Ruto assured that the government has agreed that no minerals will leave the country unprocessed, with the rights of Kenyans remaining the priority for investors partnering in the mining sector. He said the government would continue to pursue local value addition to ensure communities and the wider economy benefit from the country's mineral resources.
On youth employment, President Ruto highlighted that more than 300,000 young Kenyans are working through online platforms, ICT hubs, Jitume labs, and Business Process Outsourcing centers. He also noted that 680,000 young Kenyans have secured jobs abroad over the past three to four years, urging more youth to use the National Employment Authority to access opportunities overseas.
President Ruto stressed that Kenya must shift towards a service-based economy to unlock more jobs and achieve double-digit economic growth. He also noted that his administration has established an Anti-Narcotics Unit at the Directorate of Criminal Investigations (DCI) and provided them with sufficient vehicles to significantly boost their capacity to combat drug trafficking.
President Ruto also addressed the issue of squatters in the coastal region, pledging to significantly address the issue before 2027. He announced that he will return to the Coast before December to issue more title deeds to residents.
Key points
- The planned facility could represent about 12% of Kenya's GDP.
- The investment is expected to help raise foreign direct investment to $6B–$7B next year.
- Oil extraction is expected to begin by December.
