Kenya’s northern coast is about to host its biggest industrial project, as Nigerian billionaire Aliko Dangote finalises plans for a 16bn $ oil refinery in Lamu.
The refinery, expected to process 700,000 barrels of crude oil every day, would be the largest of its kind in East Africa, surpassing the Standard Gauge Railway project that cost 5.1bn $.
While the venture promises 60,000 jobs and a 1,000‑megawatt power plant to feed local industry, it has triggered demonstrations in Lamu Town over compensation for the land acquired.
Dangote dismissed the protests as “games played by local marketers and international players,” insisting he would move forward with the project, slated to begin construction on 1 November and be operational by 2030.
He said the refinery would source crude from global markets, much like Singapore, which has no domestic oil production yet hosts many refineries.
Kenya’s Energy and Petroleum Minister Opiyo Wandayi also stressed that the refinery’s location does not mean it will depend on regional crude supplies.
Beyond the refinery, Dangote has a portfolio of 50 billion $ in development projects across Africa, including a 10,000‑megawatt power generation goal by 2030. The Lamu plant’s power unit is designed to support not only Dangote’s operations but also other budding industries in the area.
Despite rising fuel prices in Kenya, the new refinery could eventually help lower pump prices, though international oil prices remain the determinant factor.
