Kenya is moving closer to establishing what could become East Africa’s largest oil refinery, with President William Ruto announcing that the government has reached an agreement with Nigerian industrialist Aliko Dangote to advance the ambitious Lamu project.
Speaking during the launch of the second phase of the Nyota youth empowerment programme, Ruto said the refinery is expected to create approximately 60,000 jobs while strengthening Kenya’s position as a regional energy, manufacturing and logistics hub.
If completed, the proposed refinery will have the capacity to process 700,000 barrels of crude oil per day, making it the largest refinery in East Africa and significantly reducing the region’s dependence on imported refined petroleum products.
Project expected to serve eight African countries
According to President Ruto, the refinery will not only meet Kenya’s domestic fuel demand but also supply refined petroleum products to several neighbouring countries.
He said the facility is expected to serve Ethiopia, South Sudan, Uganda, Tanzania, Rwanda, Burundi and the Democratic Republic of Congo, positioning Kenya as a major supplier of fuel across East and Central Africa.
“I spoke with investor Aliko Dangote, and we agreed that the refinery will serve not only Kenya but also neighbouring countries while creating employment opportunities for thousands of young people,” Ruto said.
The President noted that the investment aligns with the government’s broader economic agenda of creating jobs, boosting industrialisation and strengthening regional trade.
Why Lamu was selected
The refinery is planned for Lamu County, a location considered strategically important because of its deep-water port and expanding transport infrastructure.
Lamu hosts the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, one of Africa’s largest infrastructure projects, which is designed to improve trade links between Kenya, Ethiopia, South Sudan and other regional markets through roads, railways, pipelines and port facilities.
Government officials believe locating the refinery in Lamu will enhance the corridor’s role as a regional energy and logistics gateway while attracting additional investment into the coastal region.
Boost for Kenya’s energy ambitions
The planned refinery forms part of Kenya’s long-term strategy to become a leading energy and industrial hub in East Africa.
Beyond improving domestic fuel security, the project is expected to lower the region’s reliance on imported petroleum products by expanding local refining capacity.
The government also hopes the investment will stimulate manufacturing, support related industries and create thousands of direct and indirect employment opportunities during construction and operation.
Construction awaits approvals
Although Dangote Industries has not announced the project’s final investment value, company officials have previously described it as one of the group’s most significant investments outside Nigeria.
Construction is expected to begin once engineering designs are completed and the necessary financing, environmental assessments and regulatory approvals are secured.
The project has gained momentum after Dangote Industries reportedly selected Kenya ahead of other potential investment destinations in the region, citing Lamu’s strategic location and growing transport infrastructure.
Regional impact
If completed, the refinery could reshape fuel distribution across East and Central Africa by providing a reliable regional source of refined petroleum products.
Countries that currently depend heavily on imported fuel from overseas refineries would benefit from shorter supply chains, lower transport costs and improved energy security.
The project is also expected to reinforce Kenya’s ambition of becoming a regional economic powerhouse by attracting further private investment into manufacturing, logistics and energy infrastructure while creating thousands of employment opportunities for Kenyan youth.
