On September 30, 2026, ODM Party leader Oburu Oginga hailed the planned Sh2.2 trillion Dangote oil refinery in Lamu as a major industrial investment that could reshape the Coast economy, create thousands of jobs, and strengthen Kenya's position as a regional energy hub. The 700,000-barrel-per-day facility is expected to have a far-reaching impact on Lamu and the wider coastal region through employment, power generation, and growth of industries linked to the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor.
Oburu described the investment as "a powerful catalyst towards National industrialization" and said it could "permanently rewrite the economic destiny of Lamu County and the entire coastal region". He also credited President William Ruto's administration with providing the support needed to advance the investment. The refinery is expected to generate 1,000 megawatts of electricity, with 500MW available for sale to Kenya's national grid, and create more than 60,000 direct and indirect jobs.
The ODM leader linked the project to "countless strategic discussions held over many years" between Raila Odinga, the party's late leader, and Aliko Dangote, chairman of Dangote Group. Oburu said the project also held special significance for the Orange Democratic Movement due to Dangote's long-standing friendship with Raila. The refinery is planned to supply petroleum products to Kenya and other regional markets, potentially reducing East Africa's reliance on imported refined fuel.
Oburu called for residents living around the project area to have a direct stake in the benefits expected from the investment. "The host communities must be fully integrated, justly compensated, and protected," he said. The investment could help drive the development of petrochemicals, manufacturing, packaging, and fertiliser industries while expanding shipping, logistics, and marine activities around Lamu Port.
President Ruto and Dangote are expected to lead the groundbreaking ceremony on September 30, 2026. Preparations have intensified, with 2,930 metric tonnes of heavy construction machinery already delivered to Lamu Port for the project. However, the project faces a legal challenge over disputed land, with a court ordering preservation of the status quo in the affected area.
Despite the legal challenge, Dangote has maintained that the ruling will not stop the groundbreaking ceremony. The refinery is expected to have a significant impact on the regional economy and help drive Kenya's industrialization agenda. Oburu's endorsement of the project is seen as a boost to the government's efforts to attract foreign investment and create jobs.
The Lamu refinery project is a key component of Kenya's strategy to become a regional energy hub. With the project's expected completion, Kenya is likely to play a major role in supplying petroleum products to East Africa, reducing the region's reliance on imported refined fuel. The project's success will depend on the government's ability to address concerns around land acquisition and ensure that host communities benefit from the investment.
Key points
- The Dangote oil refinery is expected to create over 60,000 direct and indirect jobs and generate 1,000 megawatts of electricity.
- The project is seen as a key driver of Kenya's industrialization agenda and a boost to the country's economy.
- The refinery's success will depend on the government's ability to address concerns around land acquisition and ensure that host communities benefit from the investment.
