On Wednesday, September 30, Kenya marked the beginning of construction on a massive oil refinery in Lamu, a project valued at $16 billion, approximately Sh2.2 trillion. The ceremony, presided over by President William Ruto, was attended by Deputy President Kithure Kindiki, Nigerian billionaire Aliko Dangote, and other senior government officials. The Dangote East Africa Refinery is expected to be the largest in East Africa and one of the largest on the continent.
The refinery, located near Lamu Port on the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, is modelled on Dangote's refinery in Lagos, Nigeria. It is due for completion around 2030 and will process 700,000 barrels of crude oil a day for Kenya and neighbouring markets. The project is expected to support industries such as petrochemicals, fertiliser, chemicals, and packaging. A vessel carrying about 2,930 tonnes of construction equipment has already docked at Lamu Port.
President Ruto linked the investment to energy security, industrialisation, and job creation, stating that the refinery will create about 60,000 jobs. Dangote also mentioned that the project could employ more than 60,000 people at its peak and generate demand for food, accommodation, transport, and retail services. The government says the refinery will reduce East Africa's reliance on imported fuel and cut the foreign currency spent on it.
The groundbreaking ceremony was attended by regional leaders, including Uganda President Yoweri Museveni, Ethiopia Prime Minister Abiy Ahmed Ali, Togo President Jean-Lucien Savi de Tové, and Benin's president Romuald Wadagni. Also present were Cabinet Secretaries, Principal Secretaries, ambassadors, governors led by Lamu County Governor Issa Timamy, and other senior government officials. Kenyan, East African, and local flags decorated the venue, where heavy machinery stood ready.
Despite a legal dispute over part of the land earmarked for the project, the ceremony proceeded as planned. A court has issued orders on the disputed land, but Dangote and the government went ahead with the ceremony. The project has generated excitement among residents, who expect it to bring jobs and business opportunities to Lamu and the wider region.
The refinery is expected to have a significant impact on the region, with the potential to transform Lamu into a major fuel-processing hub. The project is also seen as a key component of the LAPSSET Corridor, a transport infrastructure project aimed at connecting Kenya, South Sudan, and Ethiopia. The construction of the refinery is expected to boost economic growth and development in the region.
The project has been hailed as a major milestone in Kenya's efforts to develop its petroleum sector. With the refinery's completion, Kenya is expected to reduce its reliance on imported fuel, saving on foreign currency and creating new opportunities for economic growth. The project is a significant investment in the region and is expected to have a lasting impact on the economy and the lives of local residents.
Key points
- The Dangote East Africa Refinery is expected to create 60,000 jobs and process 700,000 barrels of crude oil a day.
- The project is valued at $16 billion, approximately Sh2.2 trillion.
- The refinery is due for completion around 2030 and will be the largest in East Africa and one of the largest on the continent.
