On September 30, 2026, President William Ruto addressed the groundbreaking ceremony of Aliko Dangote's Sh2.2 trillion refinery in Mokowe, Lamu County. He assured Dangote that the government would protect his investment, emphasizing that no one would extort money from him. Ruto encouraged investors to view the government as development partners, not opponents, and promised a secure environment for their investments.
The refinery, estimated to cost $16 billion, is expected to process 700,000 barrels of crude oil daily and create 60,000 jobs. It will supply petroleum products to Kenya and East Africa, supporting wider economic activity around Lamu Port and the LAPSSET corridor. Ruto linked a land dispute involving 133 residents of Chandavai to attempts by individuals to create opportunities for private negotiations with investors, warning that such extortion attempts would not be tolerated.
A land dispute has been ongoing, with 133 residents of Chandavai challenging the use of ancestral property for the refinery project. The Malindi Environment and Land Court declined to stop the groundbreaking ceremony but directed parties to maintain the status quo on the disputed land. The court is set to hear the case on October 14 during an inter partes hearing.
President Ruto emphasized the need for Kenya to build a system where investors can commit capital based on clear agreements and government institutions. He confirmed that the Kenyan government would take a stake in the refinery through public assets, including land, as part of its investment. The National Infrastructure Fund will be used to help mobilize capital for the project.
Ruto encouraged Kenyans to invest in the refinery through the capital markets, as Dangote plans to create an opportunity for local investors to buy shares in the refinery through the Nairobi Securities Exchange. The refinery is expected to serve as an anchor for more economic activity around Lamu Port and the LAPSSET corridor, with various industries expected to develop around the project.
The President acknowledged that the project's success depends on financing, infrastructure, skills, crude oil supply, and access to markets. He emphasized that the groundbreaking ceremony marked only the start of a complex process and that the project's success would depend on the government's and investors' efforts to address these challenges.
Key points
- President Ruto assures Aliko Dangote of government protection for the Lamu refinery project.
- The refinery is expected to create 60,000 jobs and support wider economic activity around Lamu Port and the LAPSSET corridor.
- The Kenyan government will take a stake in the refinery through public assets, including land, as part of its investment.
