The proposed Sh2 trillion Lamu oil refinery has come under renewed scrutiny, with The Standard newspaper highlighting questions over its regional significance, crude supply and long-term commercial sustainability.
In its Wednesday, September 30, 2026 edition, the newspaper placed the planned refinery at the centre of its “The Questions” cover story, examining whether the project can deliver the expected benefits to Kenya and the wider East African region.
The publication identified regional fragmentation as one of the key issues, questioning why Kenya is pursuing the Lamu refinery as Tanzania and Uganda develop separate energy projects.
The newspaper also raised concerns about whether the refinery could shield Kenya from international oil and currency shocks if it remains dependent on imported crude.
It cited expert views that a regional petrochemical complex using crude from Kenya, Uganda and South Sudan could potentially create greater value and strengthen the project's economic case.
The proposed facility is expected to have a processing capacity of about 700,000 barrels of crude oil per day, significantly larger than Kenya's current domestic crude production. Recent reporting has put the project's estimated investment at approximately $16 billion.
The scale of the refinery has also raised questions about securing sufficient feedstock. Kenya's crude production remains far below the proposed refinery's capacity, meaning the facility would require crude supplies from other producers or international markets.
The Standard further questioned the project's long-term sustainability, particularly given the gap between Kenya's current crude production and the proposed refining capacity.
The newspaper noted that Kenya's crude oil production is expected to reach about 50,000 barrels per day at increased capacity, compared with the refinery's proposed 700,000-barrel daily capacity.
Another concern highlighted was the changing global energy market, where electric vehicles, energy transition policies and shifting petroleum demand could affect the long-term economics of large refinery investments.
The questions come as Kenya prepares for the planned groundbreaking of the Lamu facility. President William Ruto has presented the project as a major industrial investment capable of adding value to African resources, creating jobs and serving regional markets.
The refinery is expected to form part of the wider Lamu Port and LAPSSET development, with proponents also viewing it as a potential regional supply hub.