President William Ruto announced that Kenya is prepared to start building a major oil refinery in Lamu, describing the project as a crucial step towards enhancing East Africa's energy security and industrial capacity. He made these remarks after meeting with Aliko Dangote, President and CEO of Dangote Industries, and Samaila Zubairu, CEO of the Africa Finance Corporation, on the sidelines of the United Nations General Assembly in New York. The discussions focused on financing arrangements and final preparations for the Sh2.2 trillion East Africa refinery.
The groundbreaking for the refinery is scheduled for September 30, 2026, as announced by Dangote on September 3, 2026, during a meeting with investors and analysts in Gaborone, Botswana. The planned refinery will have the capacity to process 700,000 barrels of crude oil per day, making it the largest refinery in East Africa upon completion. Construction is expected to take up to three years, and the facility will produce refined petroleum products for Kenya and other countries in the region.
The refinery project is part of a broader industrial development that will include energy, manufacturing, storage, and logistics facilities. According to government projections, the wider project could create approximately 60,000 jobs. The Kenyan government has been offered a 10 percent stake in the project, valued at around Sh64.74 billion ($500 million). Dangote has also offered East African countries a combined 30 percent stake in the refinery and related developments.
Lamu was selected as the location for the refinery after Dangote Industries considered several locations in East Africa, including Tanzania. Preliminary activities such as site selection, soil testing, engineering, and design had already begun by July. The Kenyan government plans to support infrastructure development, including a 1,000-megawatt power plant and a special economic zone aimed at attracting manufacturing and other industries.
President Ruto emphasized that the project will enhance the region's energy security, deepen local value addition, create jobs, and advance Kenya's industrialization agenda. He expressed his focus on turning this landmark project into reality and delivering tangible benefits for the people of the region. The project is expected to have a significant impact on the region's energy and industrial landscape.
The meeting between President Ruto, Aliko Dangote, and Samaila Zubairu highlights the importance of international cooperation and investment in Kenya's development. The refinery project is a significant step towards achieving Kenya's energy and industrial goals, and the government is working to ensure its successful implementation. The project's progress will be closely watched by stakeholders in the region.
With the groundbreaking scheduled for September 30, 2026, Kenya and the region are set to benefit from this major investment in the energy sector. The refinery project has the potential to transform the region's energy landscape and contribute to economic growth and development. Key stakeholders will be monitoring the project's progress to ensure its successful completion.
Key points
- Kenya is ready to begin construction of a major oil refinery in Lamu.
- The refinery is expected to process 700,000 barrels of crude oil per day.
- The project could create approximately 60,000 jobs and contribute to regional economic growth.
