A section of Lamu opinion leaders has welcomed the planned Ksh2.2 trillion Dangote Oil Refinery project, set to be launched on September 30, 2026. The project, led by Nigerian billionaire Aliko Dangote, is expected to transform Lamu economically and position the county as a hub for capital-intensive investments. The leaders, led by former Lamu East MP Hashim Fumo, believe the project will create numerous opportunities for local residents.
The proposed 700,000-barrel-per-day oil refinery is expected to anchor the county’s industrial growth and guarantee a steady supply of refined petroleum products while reducing East Africa’s dependence on imported fuel. Once launched, the refinery will become the country’s largest private-sector investment and is projected to create about 60,000 jobs. The investment comes at a time when Kenya and the wider region are grappling with rising fuel prices driven by the conflict in the Middle East and disruptions caused by the closure of the Strait of Hormuz.
Lamu leaders are demanding priority for local youth in employment, business, and other opportunities arising from the investment. Hashim Omar, an Opinion Leader, stated that 70 per cent of jobs should be reserved for residents of Lamu, as the county has been marginalised for years. Nudhar Abdulrahaman, a Mechanical Engineering student, also emphasised that local youth possess the requisite qualifications and should be considered before skilled workers are outsourced.
The decision to locate the refinery in Lamu has drawn mixed reactions from residents and leaders. However, the county is now emerging as a major beneficiary of government-led infrastructure projects and private-sector investments. The Lamu archipelago, a UNESCO World Heritage Site, hosts the Lamu Port, the first component of the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor project.
The Lamu Port currently handles transhipment cargo destined for several countries, including the United Arab Emirates, Mozambique, Tanzania, Zanzibar, Seychelles, Comoros, and Madagascar. The government is also pursuing a landlord model for some port operations to enhance efficiency and competitiveness. The Lamu Port Container Terminal berths and the Lamu Special Economic Zone are earmarked for development and operation through Public-Private Partnerships (PPPs).
Former Lamu East MP Hashim Fumo also lauded Kenya Ports Authority (KPA) CEO Capt. William Ruto for improving the operationalisation of the Port of Lamu, saying this had helped attract foreign direct investment. The leaders want Capt. Ruto’s tenure extended to ensure continuity and sustain what they described as strong performance amid questions over his tenure.
The Dangote Oil Refinery project is expected to be Dangote’s second refinery after his 650,000-barrel-per-day facility in Lekki, Nigeria, which commenced operations in January 2024. With this investment, Lamu is poised to become a major economic hub, and local leaders are pushing for inclusive participation to safeguard the interests of local residents.
Key points
- Local leaders demand 70 per cent of jobs in the Ksh2.2 trillion Dangote Oil Refinery project be reserved for Lamu residents.
- The project is expected to create about 60,000 jobs and anchor the county’s industrial growth.
- The refinery will guarantee a steady supply of refined petroleum products while reducing East Africa’s dependence on imported fuel.
