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Dangote says Sh2.2tn Lamu Oil Refinery is second-fastest project to launch

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NAIROBI, Kenya, Sep 30 – Nigerian billionaire Aliko Dangote says the Sh2.2 trillion Lamu Oil Refinery is the second-fastest project to be launched following the finalisation of its conceptualisation in April. Speaking during the groundbreaking ceremony in Lamu on Wednesday, Dangote highlighted the speed at which the project had progressed from conceptualisation to the commencement of construction. The refinery, a major investment involving Dangote Industries and the Kenyan government, is expected to transform Kenya’s petroleum sector and strengthen the country’s position as a regional energy hub.

The groundbreaking ceremony was presided over by President William Ruto and attended by Ugandan President Yoweri Museveni, Ethiopian Prime Minister Abiy Ahmed and Benin’s Minister of Economy and Finance Romuald Wadagni. The project, valued at approximately Sh2.2 trillion, is designed to process up to 700,000 barrels of crude oil daily, positioning it among the largest planned petroleum refineries in Africa. The facility is expected to supply refined petroleum products to Kenya and other regional markets, potentially reducing East Africa’s reliance on imported petroleum products.

Its development is also expected to support industrialisation, create employment opportunities and stimulate economic activity in Lamu and surrounding areas. The refinery is a key component of Kenya’s broader ambitions to attract large-scale private investment into infrastructure, energy and manufacturing. The project’s groundbreaking marks a significant milestone following months of planning and negotiations between the government and the Dangote Group.

However, the development has also attracted concerns from some Lamu residents over land acquisition, compensation and public participation, issues that have featured in legal proceedings surrounding the project. The refinery is expected to play a central role in Kenya’s long-term energy strategy, although its eventual impact will depend on construction progress, financing and the development of supporting infrastructure. Dangote’s remarks on the speed of the project’s launch underscore the pace of preparations that have brought the multibillion-shilling investment to the construction stage.

NAIROBI, Kenya, Sep 30 – President William Ruto and Nigerian industrialist Aliko Dangote have broken ground for the Sh2.2 trillion East Africa Oil Refinery in Lamu, marking the formal start of construction of the massive petroleum project. The ceremony in Lamu has brought together several African leaders and senior government officials, including Ugandan President Yoweri Museveni, Ethiopian Prime Minister Abiy Ahmed and Benin’s President Romuald Wadagni. Other regional leaders and senior officials are also attending the groundbreaking, which is expected to be one of the largest industrial investment events held in Kenya.

The refinery, being developed by Dangote Industries, is designed to process up to 700,000 barrels of crude oil per day, making it one of Africa’s largest planned refining facilities. The project is expected to serve Kenya and the wider East African market, with refined petroleum products targeted for countries including Uganda, Tanzania, Ethiopia, South Sudan, Rwanda, Burundi and the Democratic Republic of Congo. The groundbreaking comes after the first vessel carrying construction equipment for the project arrived at Lamu Port on September 26.

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