President William Ruto has pledged government protection for Aliko Dangote’s planned Sh2.2 trillion refinery in Lamu, warning that individuals seeking to pressure investors through disputes, court cases or private negotiations will not be allowed to derail the project.
Speaking at the groundbreaking ceremony in Mokowe, Lamu County, on Wednesday, Ruto told Dangote that the government would ensure the Nigerian businessman’s investment was protected as Kenya seeks to expand industrial activity around Lamu Port and the LAPSSET corridor.
“I want to assure you, my good brother, Aliko. I know you have had a different experience before in Kenya. I want to assure you, nobody is going to extort anything from you. There will be nobody who will be given anything for free because they have blackmailed the system.”
Ruto said investors should be treated as development partners and not as opponents, arguing that Kenya needed to provide an environment where businesses could commit capital knowing that agreements and government institutions would protect their investments.
“Investors are partners with us in the development of our country; they are not our enemies; they are our friends.”
The President’s remarks came against the backdrop of a land dispute involving 133 residents of Chandavai, who have challenged the use of land they describe as ancestral property for the refinery project.
The Malindi Environment and Land Court declined to stop the groundbreaking ceremony on Wednesday but directed the parties to maintain the status quo on the disputed LR No. 13061 in the Hindi/Manda Magogoni area.
The court is expected to hear the case on October 14 during an inter partes hearing.
Ruto linked the legal challenge and other public statements surrounding the project to what he described as efforts by some individuals to create an opportunity for private negotiations with investors.
“No, some of the people you see issuing statements left, right, and center, and sponsoring court cases, they are actually extortionists. It is because they are looking for an opportunity for them to be talked to somewhere in the corner. I want to tell those who are expecting those brokers. There will be nobody to talk to you.”
The President said Kenya needed to build a system where investors could put money into major projects based on clear agreements rather than through informal dealings.
The planned refinery is estimated to cost $16 billion (Sh2.2 trillion) and is expected to process up to 700,000 barrels of crude oil every day.
Construction is expected to continue until about 2030, after which the facility is intended to supply petroleum products to Kenya and other markets across East Africa.
Media reports have estimated that the project could create 60,000 jobs. The refinery also includes plans for related industries, including petrochemicals and bitumen, which are expected to support wider economic activity around the facility.
The investment comes as Kenya continues to depend heavily on imported petroleum products.
Data from the Kenya National Bureau of Statistics shows that petroleum-product imports rose by 12.2 per cent to 5.5 million tonnes in 2025, while domestic demand increased by 9.9 per cent to 5.7 million tonnes.
Kenya’s petroleum import bill stood at Sh528.8 billion in 2025, compared with Sh575.5 billion in 2024. The reduction was partly linked to a fall in the average price of Murban crude from $79.86 to $69.63 per barrel.
Ruto said the refinery would form part of a wider effort to increase industrial production and reduce Africa’s reliance on exporting raw materials before importing finished goods.
He also confirmed that the Kenyan government would take a stake in the refinery through a contribution of public assets, including land, as part of its investment in the project.
Ruto said the government would not seek ownership in the refinery without providing a corresponding contribution to the investment.
The President further said the National Infrastructure Fund would be used to help mobilise capital for the project.
“Government cannot borrow or raise taxes to build every factory, finance every industry, or carry every commercial risk. So we must make Kenya a place where investment capital agreements are honored, projects are delivered, and where public interest is harnessed.”
Ruto also encouraged Kenyans to take part in the investment through the capital markets, saying Dangote planned to create an opportunity for local investors to buy shares in the refinery through the Nairobi Securities Exchange.
The refinery is expected to serve as an anchor for more economic activity around Lamu Port and the LAPSSET corridor, with transport, engineering, manufacturing and petrochemical industries among the activities expected to develop around the project.
The facility is being developed on LAPSSET land in the Magogoni area.
Ruto acknowledged that Wednesday’s groundbreaking marked only the start of a complex process and that the project’s success would depend on financing, infrastructure, skills, crude oil supply and access to markets.
“A groundbreaking, ladies and gentlemen, is a promise. A refinery is a promise kept. Between the two lies the real work: structuring financing, building infrastructure, training our workforce, delivering on time, sourcing crude, and securing the markets.”
The project will now move into its construction phase as the land dispute remains before the court, with the residents’ application scheduled for consideration on October 14.