Kenya sets Sept. 30 groundbreaking for $15bn Lamu oil refinery

Kenyan Deputy President Kithure Kindiki said construction of the East Africa Refinery in Lamu will begin next Wednesday, 30 September 2026, with President William Ruto leading the ceremony.

The announcement, from Kindiki’s briefing, said invited East African and other heads of state will attend the launch.

Kindiki called the Dangote-backed plant a landmark project that would unlock Lamu and Coast economies, create more than 50,000 jobs and advance Kenya’s industrialisation.

The facility is planned at about 700,000 barrels a day, among the largest single-train refineries in Africa, with crude expected from Kenya, Uganda, South Sudan and the DRC.

Project cost estimates range from $15 billion to $17 billion, or roughly KSh 1.9 trillion to KSh 2.2 trillion, according to government and investor briefings this year.

East African states have been offered a combined 30% equity stake. Kenya has indicated a 10% holding, while Rwanda and Ethiopia have shown interest.

Kindiki said the refinery should ease foreign-exchange pressure from fuel imports and support Kenya’s expected start of commercial oil production later this year.

The date follows talks on 21 September in New York, where Ruto met Aliko Dangote and Africa Finance Corporation chief Samaila Zubairu on financing and final preparations.

Ruto said Kenya was ready to break ground on a project meant to deepen regional value addition, energy security and industrial supply chains.

Lamu was chosen after earlier speculation about Tanzania or Mombasa, partly because of LAPSSET corridor links and the new Lamu Port.

Local leaders have welcomed the investment but demanded priority for Lamu youth in jobs and contracts. Environmental groups warn of risks to marine habitats and nearby Lamu Old Town.

Construction is expected to take several years if financing, land, pipelines and marine terminals stay on schedule. The government has already assigned Kindiki to coordinate state agencies with private investors.

Picture of ThinkBusiness Africa

ThinkBusiness Africa

ThinkBusiness Africa

Your daily dose of contexts, commentary, and insights on business and economic developments that matter to you.