Government Spokesperson Charles Owino has linked the planned Dangote refinery in Lamu to the global energy disruptions caused by the ongoing Iran-US conflict.
Owino said the increased refining capacity could help Kenya and the region withstand future fuel supply shocks.
According to Owino, the experience of Dangote’s existing refinery in Nigeria demonstrated the required value of having large-scale refining capacity outside the Middle East, as the war continues to disrupt oil and refined petroleum supplies.
Speaking on a Radio Generation interview on Tuesday, Owino said Dangote had indicated that its refinery supplied a significant share of the jet fuel used during the conflict.
“During this conflict of Iran and the US, it is his oil that sustained the aircraft. The jet fuel. I think he gave almost 20% of the jet fuel that was used because of the Hormuz problems and so on,” Owino said.
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Higher fuel prices raise production Costs
Owino said the impact of higher oil prices extends beyond the cost of fuel, affecting transport, agriculture, manufacturing and, ultimately, inflation.
“When oil prices rise, they increase the cost of production across the economy, from industrial manufacturing to agriculture, including the cost of running tractors and other farm machinery,” he said.
He attributed part of the recent rise in inflation to higher fuel costs, noting that inflation had previously fallen before increasing again amid rising energy prices.
“You remember our inflation had come from 9.7 to almost 4.4. Right. Currently, we have pushed to about 6.7. The reason why inflation is going high is because of the increase in the cost of fuel,” Owino said.
The Government Spokesperson said the planned Dangote East Africa Petroleum Refinery in Lamu could help strengthen Kenya’s energy security by increasing refining capacity in the region.
The refinery is projected to process up to 700,000 barrels of crude oil per day, with the investment estimated at $16 billion and construction expected to take about 40 months. The project is also expected to include a 1,000-megawatt power plant and petrochemical facilities.
Owino said the refinery would process Kenyan crude as well as oil produced elsewhere in the region, potentially positioning Lamu as a regional refining hub.
“This refinery, yes, will not only refine our oil in Kenya, but will also refine oil in the region and also any other oil that could be found coming our way for purposes of doing this,” he said.
Dangote Refinery Seen as Regional Energy Hub
Owino's argument is partly based on the performance of Dangote's existing refinery in Nigeria, which has a capacity of about 650,000 barrels per day and produces petrol, diesel and Jet A-1 fuel.
The International Monetary Fund has estimated that jet fuel accounts for about 19% of the refinery's output, with about 85% of its jet-fuel production expected to be exported when the facility operates at full capacity.
Dangote's Chief Executive has also said the Nigerian refinery has surplus jet fuel and could become a major global supplier, particularly as geopolitical disruptions create opportunities for refiners located outside the Gulf region.
Owino further linked the Lamu project to Kenya's Vision 2030 industrialisation agenda, arguing that the country needs to process more of its raw materials locally instead of exporting commodities and importing finished products.
He said the refinery and its planned power plant could also attract energy-intensive industries to the region, while supporting Lamu's development as an industrial and logistics hub along the LAPSSET corridor.
US-Iran war disruption on oil
The Iran-US war began on February 28, 2026, after US and Israeli strikes on Iran, with the conflict disrupting shipping through the Strait of Hormuz, one of the world's most important oil transit routes.
Although crude shipments through Hormuz have partly recovered, refined petroleum products remain disrupted.
Oil flows through the strait reached about 16.5 million barrels per day in September, compared with only six million barrels per day in March.
However, refined-product flows stood at about 677,000 barrels per day, against 3.6 million barrels per day before the war.
Brent crude was trading above $100 per barrel, about 40% higher than before the conflict. Saudi Aramco Chief Executive Amin Nasser said nearly three billion barrels of Middle Eastern oil supply had been lost during the crisis, while about one billion barrels had been drawn from global inventories.