President William Ruto is set to launch the construction of a Sh2 trillion oil refinery in Lamu this week, marking a major step in Kenya’s plans to strengthen its energy security and expand industrial activity.
The project, backed by Nigerian billionaire Aliko Dangote, is expected to become one of the country’s largest private-sector investments and could reshape Kenya’s petroleum supply chain.
According to the Daily Nation publication, the refinery is estimated to cost $16 billion (about Sh2.1 trillion), with Dangote’s company expected to provide significant investment and technical expertise for the project.
The proposed facility is planned to have a refining capacity of up to 700,000 barrels of crude oil per day. The scale would place the project among the largest industrial developments in the region, while creating opportunities for related businesses and infrastructure.
The refinery is also expected to support Kenya’s efforts to reduce dependence on imported refined petroleum products. The government has positioned the project as part of a wider strategy to improve fuel security and strengthen the country’s position as a regional energy and logistics hub.
The publication estimates that the project could generate about 60,000 jobs. Beyond direct employment, the development is expected to stimulate demand for transport, manufacturing, engineering, storage and other services around the refinery and the Port of Lamu.
A major component of the plan is the development of an industrial ecosystem around the port. This could include petrochemical industries, housing, transport facilities and supplier businesses serving the refinery and related operations.
The refinery is also expected to benefit from crude oil resources from Kenya’s Turkana oil fields. The Daily Nation report indicates that production from Turkana could provide up to 50,000 barrels of crude oil per day for the project.
However, securing sufficient crude supplies remains a key issue as Kenya seeks to develop the refinery at the proposed scale. The project will require extensive infrastructure, investment and reliable access to crude oil to sustain operations.
The launch comes as the government seeks to position Lamu as an important gateway for trade, energy and industrial development.
If implemented as planned, the refinery would significantly expand the economic activities surrounding the port and could alter Kenya’s petroleum landscape.