President William Ruto and Nigerian billionaire Aliko Dangote on Wednesday broke ground on the planned Dangote East Africa Petroleum Refinery in Lamu County, marking the formal start of construction of the multibillion-shilling project.
The refinery, estimated to cost $16 billion (about Sh2.2 trillion), is expected to have a processing capacity of 700,000 barrels of crude oil per day when completed.
The groundbreaking ceremony at Mokowe brought together several African leaders, including Ugandan President Yoweri Museveni, Ethiopian Prime Minister Abiy Ahmed, Benin President Romuald Wadagni, and Togo President Jean-Lucien Savi de Tové, alongside former Nigerian President Olusegun Obasanjo.
Ruto said Kenya would participate in the ownership of the refinery through the National Infrastructure Fund and public assets, including land.
He also said the project would provide an opportunity for Kenyans to acquire shares through the Nairobi Securities Exchange.
Dangote has previously said Kenya and two other East African countries would collectively hold a 30 per cent stake in the refinery. The project is expected to supply petrol, diesel, and jet fuel to Kenya and other regional markets while reducing East Africa’s dependence on imported refined petroleum products.
Dangote said construction is expected to take about 40 months. The project is also projected to create tens of thousands of jobs and support related industries around Lamu.
The refinery is expected to draw crude from East African producers, including Uganda, while additional supplies could come from other African and international sources.
The project, however, faces ongoing legal and community concerns. Residents have challenged land ownership and compensation arrangements, while environmental groups have raised concerns about potential effects on Lamu’s marine ecosystem. A court dispute over the project site remains active, although it did not stop Wednesday’s groundbreaking ceremony.
