Kenya's Deputy President Kithure Kindiki announced on September 22, 2026, that the government has completed preparations for the launch of the East Africa Oil Refinery Project in Lamu. The project, set to launch on September 30, 2026, is expected to bring together regional leaders as well as members of the local community. Kindiki stated that the refinery is an important project not only for Kenya but also for the wider East African region.
The Lamu Oil Refinery project is backed by Nigerian businessman Aliko Dangote and is planned to have a refining capacity of 700,000 barrels of oil per day. The project forms part of the wider Lamu Port-South Sudan-Ethiopia Transport (Lapsset) corridor and is being positioned as a regional centre for petroleum processing. Once operational, the refinery is expected to supply petroleum products to Kenya and neighbouring countries.
The government expects the project to open up employment opportunities, with an estimated 50,000 jobs expected to be created in the region. Kindiki stated that the project will help ease pressure on Kenya's foreign exchange reserves by reducing the amount of money spent on importing petroleum products. This is expected to have a positive impact on the country's economy.
The refinery is also expected to complement Kenya's oil production industry, which the government expects to begin operating towards the end of the year. Kindiki described the project as an ecosystem that is going to change Lamu, the Coast, Kenya and the wider region. The project has faced concerns linked to crude-oil supply, financing and its possible environmental impact.
Despite the expected economic benefits, questions have been raised over the project's proximity to the Lamu Old Town heritage site. Recent reports have placed the cost of the investment at about Sh2.2 trillion, with construction expected to take roughly three years. The government is finalising arrangements for protocol, security and logistics ahead of the launch event.
President William Ruto is expected to host several regional Heads of State and Government for the September 30 event. The launch will involve the local community and is expected to be a significant milestone for the project. The government is optimistic about the project's potential to create jobs and stimulate economic growth.
The Lamu Oil Refinery project is expected to have a significant impact on the region, providing petrochemical refining services and supporting industrial activities in Lamu and other parts of the region. The project is seen as a key component of the Lapsset corridor, which aims to promote economic development in the region.
Key points
- The Lamu Oil Refinery project is expected to create 50,000 jobs and ease pressure on Kenya's foreign exchange reserves.
- The project has a refining capacity of 700,000 barrels of oil per day and is planned to supply petroleum products to Kenya and neighbouring countries.
- The project has faced concerns linked to crude-oil supply, financing and its possible environmental impact.
