President William Ruto and Nigerian industrialist Aliko Dangote have officially launched the construction of the Sh2.2 trillion Dangote East Africa Refinery in Lamu, setting the stage for one of Kenya’s biggest proposed private-sector investments and a major expansion of the country’s petroleum and manufacturing industries.
The groundbreaking ceremony held on Wednesday, September 30, marked the start of construction of the 700,000-barrel-per-day refinery and petrochemical complex, which is expected to take about three years to complete and begin operations around 2030.
Ruto attended the ceremony alongside Dangote and several African leaders, including Uganda President Yoweri Museveni, Ethiopian Prime Minister Abiy Ahmed, Benin President Romuald Wadagni and Togo President Jean-Luc Savi de Tové.
Former Nigerian President Olusegun Obasanjo, Deputy President Kithure Kindiki and other Kenyans State officials were also present at the event.
President William Ruto with Nigerian billionaire Aliko Dangote at Mokowe, Lamu County on September 30, 2026.
PHOTO/PCS
The project is estimated to cost between $16 billion and $17 billion, equivalent to about Sh2.2 trillion, and is being backed by Dangote Industries and the Africa Finance Corporation.
The refinery will be constructed within the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor, with plans to process crude from Kenya’s Lokichar oil fields, other African producers and international sources.
Its location next to Lamu Port is expected to make it easier to transport crude and finished petroleum products by sea while supporting the development of a wider industrial and logistics centre in the area.
Ruto has linked the refinery to his administration’s wider industrialisation plans, saying the facility will have an impact beyond fuel production.
“The refinery whose construction we launch in Kenya next week will be bigger. It will transform the petroleum sector in our country and region, providing fuel reliability and security, scaling up industrialisation and creating 60,000 jobs.”
The facility is planned to produce petrol, diesel and aviation fuel. Its wider petrochemical operations are also expected to provide raw materials for local manufacturing.
Recent project disclosures indicate plans for a one-million-tonne polypropylene plant. Polypropylene is used to make a wide range of products, including packaging materials, food containers, household goods, pipes, furniture parts, vehicle components, cable coverings and fibres.
The petrochemical side of the project could also support industries involved in fertiliser, chemical and packaging production.
This could create a wider business network around the refinery, bringing opportunities in manufacturing, transport, logistics, warehousing and marine services in addition to fuel processing.
For Kenya, the project is expected to reduce dependence on imported refined petroleum products while improving the availability and reliability of fuel supplies.
The refinery is also being planned to serve a wider regional market, with petroleum products expected to reach countries including Uganda, Tanzania, Ethiopia, South Sudan, Rwanda, Burundi and the Democratic Republic of Congo.
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
The development is expected to create jobs and new business opportunities in Lamu, with the construction phase already generating demand for services such as transport, accommodation, catering and logistics.
Tourism Cabinet Secretary Rebecca Miano has said the industrial project could also benefit hotels and other tourism-related businesses by increasing business travel and investment in the county.
She said the refinery could help position Lamu as a destination where industrial development, tourism and business opportunities can grow alongside each other.
An early sign of the expected scale of construction activity came on September 26, when Lamu Port received 2,930 metric tonnes of heavy construction machinery aboard MV Da Yang.
Dangote has also presented the refinery as an entry point for further investment in Kenya, arguing that the project could attract other investors once construction and operations take shape.
“What this investment (Lamu refinery) will do for the Kenyans, it’s not only the refinery; the refinery is like the gate. Once you open and have the refinery, you’ll be shocked at how many people will know to come and invest in Kenya.”
Despite the launch, the project faces challenges over land and other supporting issues.
Residents of Chandavai have been involved in a land dispute linked to the development, with a court directing that the existing status quo on the disputed land be maintained as the case proceeds.
The residents have challenged aspects of the project, while Dangote has maintained that the court order will not stop the groundbreaking, although it could affect some activities at the site.
The refinery is therefore entering its construction phase alongside expectations of new investment and jobs, as well as ongoing questions over land rights, crude oil supplies and the infrastructure needed to support the development.
If completed as planned, the project would give Lamu a major role in Kenya’s petroleum and petrochemical industries while expanding its position as a logistics and industrial centre serving Kenya and the wider region.