President William Ruto has issued a stern warning to those attempting to sabotage the proposed Sh2.2 trillion Lamu oil refinery, a major infrastructure project developed in partnership with Nigerian industrialist Aliko Dangote. Speaking in Kilifi during his Coast development tour, Ruto defended the project, which aims to refine up to 700,000 barrels of crude oil per day. He accused critics of sponsoring legal battles and staging political pressure campaigns to block foreign direct investment.
Ruto outlined the project's benefits, including expanding Kenya's economy, creating jobs, and establishing the nation as a regional hub for petroleum processing. He targeted unnamed intermediaries who he accused of forcing investors out of Kenya by demanding unearned shares and creating administrative hurdles. The president pointed to Dangote's earlier attempt to construct a cement manufacturing facility in Kenya, which was ultimately set up in other African nations due to persistent share disputes.
The president connected broker interference to Kenya losing the lucrative East African Crude Oil Pipeline project, which neighboring Uganda ultimately diverted through Tanzania. Ruto did not name specific individuals or produce documentation during the speech but affirmed that his team is monitoring developments closely to safeguard the Lamu project. He stated that his administration will actively protect strategic investments in Kenya.
Ruto reported that Kenya's foreign direct investment grew from $1.6 billion in 2022 to $3.1 billion in 2025. He projected FDI inflows to reach between $6 billion and $7 billion over the next two years, driven largely by the Dangote refinery project. He faulted past administrative practices for scaring away capital through bureaucratic demands rather than offering clear incentives.
Addressing concerns regarding ownership transparency, President Ruto confirmed that the national government will retain a state interest in the facility while opening ownership to the public through the Nairobi Securities Exchange (NSE). He stated that state agencies will conduct financial literacy campaigns to guide citizens on purchasing shares on the exchange.
The proposed facility plans to process crude oil from Kenya's Turkana oilfields alongside regional imports, supplying refined products for domestic consumption and export markets. Despite ongoing land-related court challenges, President Ruto reiterated that the government will ensure the project moves forward without interference. Local residents and civil society groups in Lamu continue to scrutinize the development.
President Ruto's administration positions the project as an economic engine, but community representatives are calling for full project disclosures, environmental safeguards, fair land compensation, and structured public participation. The president emphasized that his team is monitoring developments closely to safeguard the Lamu project and ensure that it moves forward without interference.
Key points
- President Ruto warns against sabotage of the Lamu oil refinery project.
- The project aims to refine up to 700,000 barrels of crude oil per day.
- The government will retain a state interest in the facility and open ownership to the public through the Nairobi Securities Exchange.
