President William Ruto has explained why Lamu emerged as the preferred location for the proposed Dangote refinery. According to Ruto, technical studies found the coastal town better suited to support a large-scale petroleum facility and the industries expected to grow around it. The studies were conducted by government officials and prospective investors.
The choice of Lamu followed years of discussions over where a regional refinery could be established, with several locations considered as Kenya and its neighbours explored ways of developing the region's petroleum industry. The debate was initially closely linked to plans for transporting Uganda's crude oil to the East African coast. Uganda had at one point considered a pipeline through Kenya to Mombasa.
However, disagreements over the route eventually saw the project shifted to Tanzania, with Tanga emerging as the destination. This development prompted Kenya to consider whether Tanga could also become the location for a regional refinery. Ruto said, "We thought perhaps it could be built in Tanga because that is where the crude oil from Uganda was expected to go."
Further technical assessments were undertaken by government officials and prospective investors, eventually pointing to Lamu as a more suitable site. One of the major considerations was the depth of the waters off Lamu, which would make it possible for large vessels carrying crude oil and petroleum products to access the facility.
The proposed refinery should not be viewed simply as a facility for processing crude oil, but as part of a wider industrial ecosystem. The project could stimulate investment, electricity generation, trade, and the development of industries that rely on petroleum products as raw materials. Industries such as plastics and petrochemicals could develop around the refinery.
The President said the proposed development was being considered within a wider plan to position Lamu as an industrial and logistics hub. Lamu offers the infrastructure and maritime conditions necessary for a large-scale petroleum project. The project also reflects the long-running push to establish petroleum infrastructure capable of serving not only Kenya but the wider East African region.
Ruto recalled that discussions about the refinery had been underway for years before gaining renewed momentum. He met Nigerian businessman Aliko Dangote during an Africa Finance Corporation-related meeting in Nairobi, where Dangote was encouraged to consider investing in the project. The government's interest in the project goes beyond refining crude oil, with a focus on creating an industrial complex around petroleum processing.
Key points
- The Lamu location was chosen due to its suitability for a large-scale petroleum facility.
- The project is expected to stimulate investment, electricity generation, and trade in the region.
- The refinery will be part of a wider industrial ecosystem, with potential for industries such as plastics and petrochemicals to develop around it.
