Kenya has officially launched construction of the planned US $16Bn Lamu oil refinery, marking a major step in the country’s efforts to expand its petroleum-processing capacity and establish Lamu as a regional energy and industrial hub.
President William Ruto led the groundbreaking ceremony, at Lamu, where the project is being developed by Dangote Group. The refinery is designed to process up to 700,000 barrels of crude oil per day when fully operational, making it one of the largest proposed petroleum-processing facilities in Africa.
The development forms part of a broader industrial complex expected to include petrochemical and fertiliser production facilities as well as a power-generation component. The project is also expected to benefit from its proximity to Lamu Port and the wider LAPSSET Corridor, strengthening connections between Kenya’s coast, inland markets and neighbouring countries.
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Lamu oil refinery
Dangote Group has secured international engineering and technology partners for the project. Engineers India Limited has been awarded a contract valued at about US $450M for project management and engineering services, while Honeywell is providing technology and engineering support for the refinery.
Construction is expected to take about 40 months, putting the project on a potential path toward completion around 2030, subject to construction progress and other project requirements. The refinery is expected to change Kenya’s petroleum supply structure by increasing domestic refining capacity and providing an additional source of refined fuels for the East African market. Kenya currently relies heavily on imported petroleum products to meet domestic demand, making the availability of local refining capacity strategically important for fuel supply and logistics.
The government has also linked the development to job creation, industrialisation and increased economic activity in Lamu. Officials expect the project to generate employment during construction and create longer-term opportunities across refining, logistics, manufacturing and related services.
The launch comes as Kenya seeks to position Lamu as more than a maritime gateway. Through the LAPSSET infrastructure programme, the government is developing the port and associated transport and industrial infrastructure to serve Kenya and landlocked markets in the wider East African region.
However, the project also faces challenges, including a dispute over land at the proposed refinery site. The legal dispute could affect aspects of the development as the parties await further court proceedings. Despite the challenges, the groundbreaking represents a significant milestone for Dangote Group’s expansion into East Africa and Kenya’s ambition to build a larger petroleum and petrochemical industry around the Lamu corridor.
