NAIROBI, Kenya – Final preparations are underway for the groundbreaking of the proposed Sh2.2 trillion Lamu Oil Refinery, with Deputy President Kithure Kindiki saying the ceremony is scheduled for next Wednesday, September 30.
Kindiki said several heads of state and government from East Africa and beyond are expected to attend the event, which will be led by President William Ruto.
He spoke during a high-level preparations meeting at his official residence in Karen as the Government and project partners finalise arrangements for the ceremony.
The September 30 date was previously announced by Dangote Industries chairman Aliko Dangote, while recent government statements have confirmed preparations for the launch.
Kindiki: Lamu refinery will transform Coast economy
Kindiki described the refinery as a landmark investment that could position Kenya and the wider East African region as a major petrochemical, energy and logistics hub.
“The Lamu Refinery is a landmark project that will unlock the economy of Lamu and the Coast region, create more than 50,000 jobs and boost Kenya’s industrialisation quest,” he said.
Recent government projections have put the employment potential of the wider industrial development at more than 60,000 jobs, including thousands of skilled positions.
The project is expected to anchor additional investments in energy, manufacturing, storage, logistics and petrochemicals around Lamu.
700,000 barrels per day capacity
The proposed refinery is designed to process 700,000 barrels of crude oil per day, which would make it the largest refinery in East Africa if completed as planned.
Construction is expected to take about three years, with the facility intended to produce refined petroleum products for Kenya and regional markets.
The refinery is also expected to form part of the wider Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor, using Lamu’s deep-water port to support crude imports, refined-product exports and related logistics.
Kenya offered 10 per cent stake
Dangote Industries has offered East African countries a combined 30 per cent stake in the refinery and related developments.
Kenya has been offered a 10 per cent stake valued at about Sh64.7 billion ($500 million), while Rwanda and Ethiopia have also expressed interest in participating in the regional shareholding.
The ownership structure is part of a broader plan to develop the refinery as a regional project rather than solely a Kenyan facility.
Government plans power plant and special economic zone
The Government is also planning additional infrastructure around the refinery to support the wider industrial complex.
The plans include a proposed 1,000-megawatt power plant and a special economic zone intended to attract manufacturing and other energy-intensive industries.
The broader development is expected to create opportunities in construction, engineering, transport, storage, manufacturing and other supporting sectors.
Refinery faces major financing and crude supply questions
Despite the planned groundbreaking, the project still faces significant execution challenges.
Reuters has reported that the proposed refinery will require substantial financing and that securing reliable crude supplies remains a key issue because Kenya does not currently have commercial-scale crude production. Potential regional supplies could come from South Sudan, Uganda and Kenya, although infrastructure and geopolitical issues remain.
The Government and Dangote Industries nevertheless say the project is moving ahead, with construction expected to begin following the September 30 groundbreaking.
