President William Ruto has appointed Deputy President Kithure Kindiki to chair a government committee that will coordinate Kenya’s engagement with private investors on the proposed Sh2.2 trillion East African oil refinery project expected to be constructed in Lamu.
The appointment marks a significant step in advancing one of the country’s most ambitious industrial and energy projects, which aims to reduce East Africa’s reliance on imported refined petroleum products while strengthening regional fuel security.
Speaking on Wednesday, Ruto said the committee will work closely with investors and employers to fast-track preparations for the refinery, adding that the government has already identified a date for the project’s groundbreaking.
“I have asked the Deputy President, Kithure Kindiki, to chair the government committee that is going to work with private investors and employers for what will be one of the largest investments in our country, the investment in the East African oil refinery,” the President said.
He disclosed that the refinery is expected to cost approximately Sh2.2 trillion, describing it as one of the largest infrastructure investments Kenya has ever pursued.
Government moves from talks to implementation
The latest announcement signals a shift from negotiations to implementation after months of discussions between the Kenyan government and Nigerian billionaire industrialist Aliko Dangote.
Earlier this year, Dangote expressed interest in investing in a large-scale refinery to serve the East African market, saying the region possesses sufficient resources and market demand to sustain such a project if governments provide the necessary policy support.
President Ruto welcomed the proposal, arguing that Africa must move away from exporting raw materials while importing refined products if it hopes to accelerate industrialisation and create sustainable economic growth.
The establishment of a government committee chaired by Kindiki is expected to coordinate engagements with investors, oversee planning, and facilitate collaboration between the public and private sectors before construction begins.
Lamu identified as preferred location
The proposed refinery is expected to be built in Lamu, a location viewed as strategically positioned because of its access to the Indian Ocean and regional transport corridors.
Dangote recently confirmed that Lamu had emerged as the preferred site for the refinery, reinforcing earlier discussions between Kenya and private investors on the project’s location.
The refinery is expected to process crude oil for Kenya and neighbouring countries, reducing dependence on imported fuel while boosting regional energy security.
Project expected to transform energy sector
President Ruto has previously acknowledged resistance from interests that benefit from fuel imports but maintained that the government remains committed to delivering long-term investments that support value addition within Africa.
The government has also dispatched technical teams to study refinery models in other African countries as part of preparations for the project.
If completed, the refinery is expected to create thousands of jobs during construction and operation, stimulate industrial growth, enhance fuel supply stability and strengthen Kenya’s position as a regional energy hub.
The investment is also expected to support wider economic development through improved infrastructure, increased private sector participation and expanded opportunities across the energy value chain.
