Kenya to Launch $16 Billion Oil Refinery in Lamu

Lamu, Kenya – September 30, 2026: Nigerian businessman Aliko Dangote and Kenyan President William Ruto have laid the foundation stone for the construction of a $16 billion oil refinery project, which is being built in the town of Lamu on the coast of Kenya.

The refinery is designed to process up to 700,000 barrels of crude oil per day, producing gasoline, diesel, and jet fuel. The construction of the project is scheduled to be completed by 2030.

This project has been described as one of the largest industrial projects planned in East Africa, with the aim of reducing the region's dependence on imported oil and increasing Africa's capacity to refine crude oil domestically.

According to the report, Dangote has offered East African governments a 30% stake in the refinery, which could be part of a plan to increase regional participation.

“This is Africa coming together to build Africa,” Dangote said at the groundbreaking ceremony.

The project is also linked to a power plant with a capacity of 1,000 megawatts, which is intended to supply electricity to the refinery and other industries expected to arise in the Lamu area.

Dangote stated that the project could create tens of thousands of jobs during construction and when it becomes operational.

However, the project is facing opposition from some local residents and environmental groups, who have expressed concerns about land compensation, the rights of local people, and the environmental impact on the Lamu coast.

A Kenyan court has also ordered that the current situation be maintained at part of the disputed site, following a lawsuit filed by local residents. The dispute focuses on land, compensation, and environmental issues.

The Lamu area has strategic importance, as it is close to the Lamu port and the LAPSSET corridor, which connects the coasts of Kenya to the markets and economic hubs of the region.

If completed as planned, the Lamu refinery could become one of the largest oil refining centers in East Africa, which could impact oil supply, trade, and energy security in the region.