The Sh2.2 trillion Dangote East Africa Petroleum Refinery is more than a major investment in Kenya’s oil industry, Prime Cabinet Secretary Musalia Mudavadi has said, linking the project to regional trade, connectivity, peace and Africa-led development.
Speaking at the groundbreaking ceremony in Mokowe, Lamu County, on Wednesday, Mudavadi said the refinery would strengthen economic links across the region while creating opportunities for trade and shared growth.
He said the project showed how economic development and peace are closely connected, with stronger trade and regional links helping build stability.
“It is now clear that this monumental project is not only strengthening regional connectivity, but its realization also reminds us that peace is the foundation of economic development. In turn, connectivity, trade, and shared prosperity will help secure lasting peace and stability across our region.”
The planned refinery will have a capacity to process 700,000 barrels of crude oil per day, making it one of Africa’s largest planned refineries and the biggest planned facility in East Africa.
The project is estimated to cost between $16 billion and $17 billion, about Sh2.2 trillion, with completion expected around 2030.
It is being developed along the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor, next to the deep-water Lamu Port.
Its location is expected to support the movement of crude oil into the facility and the export of refined petroleum products, while also helping Lamu grow into a wider industrial and logistics centre.
The refinery comes at a time when Kenya and other countries in East Africa rely heavily on imported refined petroleum products.
Once operational, the facility is expected to produce petrol, diesel and aviation fuel, with projections showing it could produce more than 100 million litres of the three products each day.
The project is also expected to support the growth of a wider petrochemical industry, providing materials for manufacturers and other businesses that use petroleum-based products in their operations.
Mudavadi said the development also represented Africa’s effort to find its own solutions to the continent’s economic needs.
“That embodies African unity, African solutions to African needs, and continental shared aspiration conceived by Africans, driven by African leaders, and delivered for the benefit of the African people, it is a project that speaks to the Africa we are building together.”
The refinery is expected to create more than 60,000 jobs through the wider development, with about half projected to be skilled positions.
The employment opportunities are expected to extend beyond the refinery itself to areas such as construction, transport, logistics, hospitality and manufacturing, providing opportunities for residents of Lamu and the wider Coast region.
The scale of the planned development has already been reflected in early construction activity.
On September 27, Lamu Port received 2,930 metric tonnes of heavy construction machinery aboard MV Da Yang ahead of the groundbreaking ceremony.
The refinery could also provide Kenya with another option for processing crude produced in the region. However, Kenya’s domestic oil production remains far below the planned refinery capacity, with output projected to reach about 50,000 barrels per day from 2032.
This means the facility would need to obtain much of its crude from other countries and international markets.
Mudavadi also credited President William Ruto for advancing the project and thanked Dangote for committing to the investment.
The development is, however, taking place amid a land dispute involving residents of Chandavai, who have challenged the ownership and acquisition of part of the proposed site.
A court has ordered that the existing situation on the disputed land be maintained as the case continues. Dangote has said the order will not stop the groundbreaking, although it could affect some activities at the site.
Mudavadi's remarks placed the refinery within a wider vision of African economic cooperation, with the project expected to strengthen Lamu’s role in petroleum processing, logistics and industrial activity while serving markets in Kenya and across East Africa.