President William Ruto has shed light on the conception of the Ksh.2 trillion Dangote East Africa Oil Refinery in Lamu County. The project was initiated to shield Kenya and the wider region from disruptions in the global oil supply chain. Ruto revealed that the idea gained momentum after Kenya experienced challenges in accessing fuel during disruptions linked to tensions in the Middle East. This was particularly evident when Iran faced difficulties, affecting the Strait of Hormuz.
According to Ruto, he had been contemplating the idea for some time before sending officers from his office to meet with Dangote and visit one of his refineries. The officers advised that further research was needed before the project could proceed. Ruto subsequently engaged with Ugandan President Yoweri Museveni and Tanzanian President Samia Suluhu Hassan on the need for the refinery, as discussions on its location began. Tanga in Tanzania was initially considered as a possible site.
However, subsequent studies involving Dangote and Kenyan officials identified Lamu as a more suitable location. Ruto cited the depth of the sea as one of the reasons for choosing Lamu. The President said his meeting with Dangote in Nairobi later helped advance the project, explaining that the Nigerian businessman attended the ‘Africa We Build Summit’ hosted in Nairobi. This meeting led to discussions that ultimately resulted in the groundbreaking ceremony in Lamu.
The refinery is expected to create jobs and attract investment while supporting the development of industries linked to petroleum processing. Ruto stated that the project would provide employment opportunities, attract investment, and boost business. The refinery is also anticipated to spur the growth of related industries, such as plastic and petrochemicals manufacturing. This development is expected to transform the area into a major industrial centre.
Ruto described the refinery as a major investment, claiming that its value was equivalent to 12% of Kenya’s Gross Domestic Product (GDP). He also noted that the project would significantly boost Kenya’s Foreign Direct Investment (FDI). The FDI has risen from USD 1.6 billion when Ruto assumed office to USD 3.1 billion in 2025. The President expects the FDI to reach between 6 and 7 billion dollars in the next few years.
The Kenyan government has already set aside 9000 acres for the project in Lamu, with plans to allocate an additional 3000 acres for the refinery and Special Economic Zone. Ruto described the development as a game-changer for the national economy and residents of the Coast region. The project is expected to have a positive impact on the local economy and transform the area into a major industrial hub.
The Dangote East Africa Oil Refinery is a significant milestone in Kenya's efforts to enhance its energy security and industrial development. With a value of Ksh.2 trillion, the project is poised to have a lasting impact on the country's economy. As the project moves forward, it is expected to create new opportunities for economic growth and development in the region.
Key points
- The Dangote refinery is valued at Ksh.2 trillion, equivalent to 12% of Kenya's GDP.
- The project is expected to create jobs and attract investment while supporting the development of industries linked to petroleum processing.
- The refinery is anticipated to boost Kenya's Foreign Direct Investment (FDI) to between 6 and 7 billion dollars in the next few years.
