Aliko Dangote has declared that the Sh2.2 trillion refinery planned for Lamu will move ahead despite the legal and other challenges surrounding the project, saying his group is ready to deal with the hurdles as construction gets underway.
The Dangote Group president said the investment had crossed an important stage after all agreements were signed, paving the way for the project to move from years of planning to physical work at the site.
Dangote spoke on Wednesday during the groundbreaking ceremony in Mokowe, Lamu County, where he outlined how construction of the $16 billion refinery will progress.
The facility is planned to process as much as 700,000 barrels of crude oil per day. It is expected to be completed around 2030 and supply refined petroleum products to Kenya and markets across East Africa.
Dangote said workers would first lay the foundations before putting up steel structures and extending pipelines, followed by the installation of the various processing units.
“The groundbreaking ceremony is an act of faith. Today we see earth. Tomorrow we see foundations. Then steel will rise. Pipelines will stretch. Processing units will take shape. 1000s of men and women will come to work, and where we stand today, an industrial city will begin to emerge.”
He said the journey from an initial plan to a functioning refinery follows several stages, with the groundbreaking marking the point at which the idea begins to take physical form.
“That is how transformation happens. First as an idea, then as a decision, then as a work, and finally as a reality.”
The refinery is being planned at a time when Kenya continues to spend heavily on imported petroleum products.
According to Kenya National Bureau of Statistics data, petroleum-product imports grew by 12.2 per cent to 5.5 million tonnes in 2025. Domestic demand also went up by 9.9 per cent to 5.7 million tonnes, while the country’s petroleum import bill reached Sh528.8 billion.
The new facility is expected to expand Kenya’s refining capacity and reduce dependence on imported refined fuels, while also serving other countries in the region.
The government estimates that the project could generate about 60,000 direct and indirect jobs. The actual number of positions will depend on the final arrangements for construction and refinery operations.
Beyond fuel production, the investment is expected to give further impetus to Lamu Port and the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor.
The refinery has been presented as a major industrial project for the coastal region, with possible business activity in areas such as logistics, petrochemicals, manufacturing and energy.
However, the project has also drawn a legal challenge from residents over the land earmarked for the development.
A total of 133 Chandavai residents have gone to court, arguing that the contested property is ancestral land that their families have occupied and used for generations.
The residents have raised issues relating to possible displacement, compensation and resettlement.
On September 25, the Malindi Environment and Land Court ordered the parties to maintain the existing status quo over LR No. 13061 in the Hindi/Manda Magogoni area.
The order will remain in place as the court prepares to hear the matter on October 14 during an inter partes session.
The court did not issue an order stopping Wednesday’s groundbreaking ceremony.
Dangote acknowledged the legal challenge and said his group had dealt with difficult situations before and was prepared for what lies ahead.
“We have actually traveled that road before. We know it will not be easy. There will be challenges. You must have seen one yesterday. But what I said, we are not really scared about people taking us to court. Anybody who wants to cause trouble, we are ready for his trouble, and we give him headache.”
He also addressed questions over whether the huge size of the proposed investment could make it difficult to deliver.
“There will be people who say again that the ambition is too large, but we also know something else. Nothing transformative was ever built by people who were frightened by the size of the challenge.”
L-R: Prime Minister of Ethiopia, Abiy Ahmed Ali; Uganda President, Yoweri Museveni; President William Ruto; Industrialist and businessman Aliko Dangote; Former Nigerian President, Olusegun Obasanjo; President of Benin, Romuald Wadagni and President of Togo, Jean-Luc Savi de Tové during the launch of the Dangote East Africa Petroleum Refinery at Mokowe, Lamu County on September 30, 2026. PHOTO/PCS
Dangote thanked Deputy President Kithure Kindiki and the Kenyan government for helping complete the agreements needed for the project.
“I must also thank the Deputy President of Kenya for working round the clock under the leadership of His Excellency the President to make sure all our agreements are done, and we signed the agreement yesterday.”
The Lamu refinery will be the group’s second major refinery investment after its 650,000-barrel-per-day facility in Nigeria.
Dangote said the Nigerian plant is now operating at the same crude-processing capacity.
He further placed the Lamu project within the group’s wider investment programme, saying Dangote Group has set aside $50 billion for projects to be implemented by 2030.
The planned investments cover several sectors, including infrastructure, minerals, ports, power and chemicals.
“Our group has actually earmarked 50 billion dollars to roll out projects under our current plan, which ends in 2030. Your Excellencies, we have more capacity to take on investment across critical sectors: infrastructure, minerals, ports, power, and chemicals.”
With the agreements now signed and construction formally launched, the project enters a new phase that will require sustained work at the site.
The group will also have to navigate the ongoing land case and meet the technical and logistical needs required to build and eventually operate the refinery by the targeted completion period.