Government Clears Final Hurdle for Massive Lamu Refinery

Date:

NAIROBI, Kenya- Deputy President Kithure Kindiki has chaired a final government planning meeting ahead of the groundbreaking ceremony for the proposed East Africa Refinery in Lamu.

The meeting brought together senior government officials, including top security officers, as the administration finalised logistical and security arrangements for the launch of the multibillion-shilling project.

“Held the final meeting to prepare for the groundbreaking of the East Africa Refinery in Lamu,” Kindiki said.

“The refinery will position Kenya and East Africa as a key petrochemical industrial hub and a competitive energy logistics centre.”

The planned refinery, backed by Nigerian industrialist and Africa’s wealthiest man Aliko Dangote, is expected to process about 700,000 barrels of crude oil daily.

It will be constructed within the Lamu Port-South Sudan-Ethiopia Transport Corridor Special Economic Zone near Lamu Port.

The project is estimated to cost between $15 billion and $16 billion, equivalent to approximately Sh1.9 trillion to Sh2.1 trillion, and is expected to be completed by 2030 if construction proceeds according to schedule.

Dangote Industries has said the refinery could be financed through internal funds, bonds, equity from regional governments and proceeds from capital-market transactions.

The company expects the facility to supply refined petroleum products to Kenya and neighbouring countries, reducing the region’s reliance on imported fuel.

Kenya spent about $4 billion, or approximately Sh512 billion, on petroleum imports in 2025, making fuel the country’s largest import expense.

Kindiki said the project would create jobs, support industrial development and generate new economic opportunities in Lamu and the wider Coast region.

“This landmark project will unlock the economy of Lamu and the Coast region, create jobs and boost Kenya’s industrialisation quest,” he said.

The proposed facility would be Kenya’s first operational oil refinery since the closure of the Mombasa refinery in 2013.

However, the project will require substantial supporting infrastructure, including crude oil supply systems, storage terminals and marine loading facilities. 

The LAPSSET master plan provides for storage capacity of between one million and 1.5 million barrels, but much of the infrastructure has yet to be constructed.

Environmental organisations have also raised concerns about possible effects on marine ecosystems and Lamu Old Town, a UNESCO World Heritage Site located near the proposed development area.

The government has not disclosed the exact date of the groundbreaking ceremony, but earlier project plans indicated it would take place before the end of September.

Joseph Muraya
Joseph Muraya
With over a decade in journalism, Joseph Muraya, founder and CEO of Y News, is a respected Communications Consultant and Journalist, formerly with Capital News Kenya. He aims to revolutionize storytelling in Kenya and Africa.

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