The government has explained why the Changamwe refinery plant in Mombasa County was shut down, saying the move was driven by a shift in strategy toward storage and distribution of petroleum products.
The facility stopped crude oil refining in September 2013 and has since been repurposed as a storage and distribution depot under the management of the Kenya Pipeline Company (KPC).
Appearing before the Senate on Wednesday, May 6, Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the decision was guided by the need for commercial viability in refinery operations.
Why Changamwe refinery was shut down
He noted that the Changamwe plant was no longer economically sustainable, leading to its closure.
“For one to undertake a refinery business, it must make commercial sense. The refinery in Changamwe was found not to make business sense. That is why, as a matter of fact, operations at the facility were discontinued,” Wandayi said.
Despite the shutdown, the CS expressed optimism that Kenya is close to beginning crude oil production in South Lokichar, Turkana County, with the government completing key preparatory steps ahead of production expected before the end of 2026.
He said initial output is projected at about 20,000 barrels per day, rising to around 50,000 barrels per day, although this remains below the 300,000 to 500,000 barrels required to sustain a standalone refinery.
Wandayi said this production gap supports Kenya’s push for a regional refining model, including a proposed East African oil refinery in Tanga, Tanzania.
The project, developed under a public-private partnership, is expected to process about 650,000 barrels per day, making it one of the largest refineries globally. It is part of a wider continental investment plan estimated at KSh 2.5 trillion and is expected to take about five years, with private investors including Nigerian billionaire Aliko Dangote involved.
Ruto clarified that the refinery plan was part of ongoing regional discussions involving East African leaders, including Uganda’s President Yoweri Museveni, and not a unilateral declaration.
He said the initiative is aimed at promoting shared use of natural resources to drive industrial growth across the region, with benefits expected to extend to Kenya, Tanzania, Uganda and South Sudan through sectors such as petrochemicals, fertiliser production and manufacturing.
Changamwe refinery