Kenya has taken a major step toward transforming its energy sector after President William Ruto announced a new agreement with Nigerian billionaire Aliko Dangote to move forward with a massive oil refinery project in Lamu.
If completed, the proposed refinery will process 700,000 barrels of crude oil daily, making it the largest refinery in East Africa. Moreover, the project is expected to create about 60,000 jobs and supply refined petroleum products to eight countries across East and Central Africa.
President Ruto made the announcement while launching the second phase of the government’s Nyota youth empowerment programme.
Speaking during the event, he confirmed that discussions with Dangote had reached a positive outcome.
“Kenya will now build the East African refinery here in Lamu, where we will need 60,000 young people to work.”
The president explained that the refinery would not only serve Kenya but also several neighbouring countries that currently depend heavily on imported refined fuel.
“I spoke with investor Aliko Dangote, and we agreed that the refinery will not only serve Kenya, but also Ethiopia, South Sudan, Uganda, Tanzania, Rwanda, Burundi and the Democratic Republic of Congo, while creating employment opportunities for our youth.”
According to the government, the refinery will improve fuel availability while supporting economic growth across the region.
In addition, industries that rely on petroleum products could benefit from shorter supply chains and lower transportation costs.
The project will be located in Lamu, a coastal county that already plays an important role in regional trade.
The area hosts the Lamu Port-South Sudan-Ethiopia Transport Corridor, commonly known as LAPSSET.
This major infrastructure project connects Kenya with Ethiopia, South Sudan, and other neighbouring countries through roads, rail lines, pipelines, and ports.
Therefore, the refinery is expected to strengthen Lamu’s position as a regional trade gateway.
The announcement follows Dangote Industries’ earlier decision to choose Kenya over Tanzania for the proposed investment.
The company reportedly selected Lamu because of its deep-water port and direct access to regional transport routes.
Although the total investment cost has not been disclosed, company officials have previously indicated that it could become one of Dangote Industries’ biggest projects outside Nigeria.
Meanwhile, construction is expected to begin after engineering studies, financing arrangements, and regulatory approvals have been completed.
The Kenyan government has continued to attract major private investments aimed at boosting industrial production and creating employment.
