Ruto and Dangote Break Ground on $16 Billion Lamu Refinery

President William Ruto and Nigerian industrialist Aliko Dangote broke ground on September 30 for the East Africa Refinery in Lamu, Kenya. The $16 billion (Sh2.2 trillion) project aims to process 700,000 barrels of crude oil per day by 2030, reducing East Africa's reliance on imported fuel and creating approximately 60,000 jobs. The facility will integrate with the LAPSSET corridor and include a private power plant capable of feeding 500MW into the national grid.

The launch proceeded despite a September 25 order from the Malindi Environment and Land Court to maintain the status quo on the site. The ruling followed lawsuits from 133 residents of Chandavai and Magogoni who allege the government unlawfully seized ancestral land without compensation or public participation. While Justice Jane Onyango paused construction activities until October 14, the court declined to block the groundbreaking ceremony itself.

President Ruto dismissed the legal challenges as attempts by brokers and profiteers to extort investors. He announced that the government will take an equity stake using the National Infrastructure Fund and that shares will be available to the public via the Nairobi Securities Exchange. Aliko Dangote pledged to establish a training school for 1,000 local residents and offered regional governments a combined 30 percent equity stake.

Regional reactions were mixed. While East African Community officials praised the project as a catalyst for integration, Ugandan President Yoweri Museveni declined to invest, reaffirming Uganda's commitment to its own domestic refinery in Hoima. Early contracts have already been awarded to Engineers India Limited and Honeywell Technologies.