Leaders and residents of Lamu County have welcomed plans by Nigerian billionaire Aliko Dangote to establish a crude oil refinery in the coastal county, expressing optimism that the project will stimulate economic growth and create employment opportunities.
The announcement follows a directive by President William Ruto, who tasked Deputy President Kithure Kindiki with leading a joint government and private sector team to coordinate preparations for the proposed multi-billion-shilling investment.
Speaking at State House, Nairobi, during the signing of the National Wealth Fund Act 2026, President Ruto said the government had already begun preparations for the implementation of the project and that plans were underway for a groundbreaking ceremony.
“The government has already commenced preparations for the implementation of this project, and arrangements are being made for the groundbreaking ceremony,” President Ruto said.
However, the Head of State did not disclose the official date for the commencement of construction.
According to international industry estimates, the refinery—expected to be the largest in East Africa—will have the capacity to process 700,000 barrels of crude oil per day. The facility is expected to supply refined petroleum products to Kenya and neighbouring countries, reducing dependence on imported fuel.
Dangote Group had earlier expressed interest in establishing the refinery in Tanga, Tanzania, before reportedly shifting its focus to Kenya due to the country’s strategic advantages and infrastructure.
Although the exact location of the refinery has not been officially confirmed, government sources indicate it is likely to be constructed in Magogoni, near the Lamu Port at Kililana in Lamu West Constituency.
The Port of Lamu is regarded as one of the region’s most modern deep-water ports, capable of handling large cargo vessels and supporting increased regional trade.
Lamu Deputy Governor Dr Mbarak Salim welcomed the investment, saying the county government, local leaders and residents were ready to work closely with the investor to ensure the project’s success.
“The county government, together with local leaders and residents, is fully prepared to support this investment and ensure its successful implementation,” Dr Salim said.
Lamu Port General Manager Abdulaziz Mzee said the refinery would significantly boost business activities at the port and strengthen Kenya’s position as a regional energy hub.
Residents also welcomed the proposal but urged the investor and the government to ensure meaningful public participation throughout the project’s implementation.
Former Lamu East MP Mohamed Hashim cautioned against repeating mistakes made during the development of the Lamu Port, which resulted in legal disputes over community rights and land issues.
Former Lamu Municipal Mayor Famau Ahmed proposed that at least 70 percent of jobs created by the project be reserved for local youth.
Environmental activist and Executive Officer of the Lamu Women Alliance (LAWA), Raya Famau, called for adequate compensation for all landowners whose property may be acquired for the project.
Meanwhile, Mohamed Abdulkdir, Executive Secretary of the Council of Imams and Preachers of Kenya (CIPK) in Lamu County, urged the investor to prioritize community development by investing in social services alongside the refinery project.
The proposed refinery is expected to become one of Kenya’s largest industrial investments, with the potential to transform Lamu into a major regional energy and logistics hub while creating thousands of direct and indirect jobs.
