The Sh2.2 trillion refinery is expected to strengthen Kenya’s energy security, create thousands of jobs and position Lamu as a major industrial and logistics hub for East Africa
Kenya has broken ground on the proposed Sh2.2 trillion Dangote East Africa Petroleum Refinery in Lamu, commencing what could be one of the region’s largest industrial investments.
The groundbreaking ceremony was presided over by Kenyan President William Ruto and attended by several African leaders, including Uganda’s President Yoweri Museveni, Ethiopian Prime Minister Abiy Ahmed Ali, Togo’s President Jean-Lucien Savi de Tové and Benin’s President Romuald Wadagni. Former Nigerian President Olusegun Obasanjo and delegates from across Africa also attended.
President Ruto described the refinery as a major step in Africa’s industrialisation drive and said it would reinforce Kenya’s position as an energy and logistics hub.
“The establishment of this refinery is a turning point, demonstrating our resolve to reimagine Africa’s industrial future, turn our ambitions into action and tap the continent’s massive potential,” said Ruto.
The Kenyan government expects the project to boost the country’s economy by about 12% and attract an additional US$4 billion in foreign direct investment annually during the four-year construction period. It is also expected to create approximately 60,000 direct jobs, with wider employment opportunities anticipated across shipping, manufacturing, logistics and related industries.
The government has announced that it will invest in the refinery through its infrastructure investment funds and acquire an equity stake in the project.
The development is also closely linked to the LAPSSET Corridor, with the Kenyan government positioning the refinery as an anchor investment that could accelerate the transformation of the corridor into a major industrial and logistics centre. Kenya’s State Department for Transport said the project highlights Lamu Port’s strategic role in supporting large-scale investment and regional connectivity.
Speaking at the ceremony, Dangote Group President and Chief Executive Officer Aliko Dangote said the project reflected the group’s confidence in Kenya and the wider East African market.
“We are united by one conviction, Africa must industrialize. For too long, others have doubted Africa’s potential, but we believe the continent can become self-sufficient and globally competitive through strategic investments and value addition,” said Dangote.
More than 110 pieces of equipment have already been mobilised for the project, with a further 400 units expected to arrive as construction progresses. The Kenyan government has also said the development will include skills and engineering training opportunities for local youth.
Dangote said the company would prioritise local participation through employment, training and engineering skills development, with the aim of building a workforce capable of supporting industrial development beyond the construction phase.
The refinery is expected to have a processing capacity of up to 700,000 barrels of crude oil per day, supplying petroleum products to Kenya and wider markets across East and Central Africa. Kenya’s Ministry of Information said the development is also planned as part of an integrated industrial complex that will include a 1,000MW power plant, as well as fertiliser and chemical manufacturing facilities.
Construction is expected to take about 40 months, according to the project announcement.