Ruto, Dangote Break Ground on Sh2.2 Trillion Lamu Refinery as Kenya Eyes Major Industrial Transformation

 

President William Ruto and Nigerian billionaire Aliko Dangote have officially broken ground on the proposed Dangote East Africa Petroleum Refinery in Lamu County, marking the formal start of construction of the Sh2.2 trillion ($16 billion) mega project.

The groundbreaking ceremony was held on Wednesday, September 30, at Mokowe and brought together several African leaders, including Uganda's President Yoweri Museveni, Ethiopian Prime Minister Abiy Ahmed, Benin President Romuald Wadagni and Togo President Jean-Lucien Savi de Tové, alongside former Nigerian President Olusegun Obasanjo.

Ruto described the project as a major milestone for Kenya and the wider region, saying its impact would extend beyond the country's borders.

The refinery is planned to have a processing capacity of 700,000 barrels of crude oil per day, which would make it the largest refinery in East and Central Africa and among the world's largest once completed.

Beyond petroleum refining, the project will form part of an integrated industrial complex featuring a 1,000-megawatt power plant, fertiliser and chemical manufacturing facilities and other related industries.

According to Ruto, the investment is expected to strengthen regional energy security, reduce reliance on imported petroleum products, support foreign-exchange savings and accelerate industrial development along the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor.

The President said the project is expected to create about 60,000 direct jobs during its development and attract additional investment while helping build local technical skills.

The refinery is targeted for completion within about 40 months, with Dangote Group saying more than 110 pieces of equipment are already on site and hundreds more expected to arrive during the construction phase.

Ruto said the investment represents a broader push to change Africa's traditional economic model of exporting raw materials and importing finished products.

The project, however, faces legal and environmental challenges, including a land ownership dispute involving residents and concerns raised over its potential impact on the coastal environment. The groundbreaking proceeded despite a court case over land rights.

The Lamu refinery is expected to serve markets across East and Central Africa, positioning the coastal region as a major hub for petroleum processing, manufacturing, energy and logistics.