President William Ruto will lead the groundbreaking ceremony for the Sh2.2 trillion Dangote East Africa Refinery in Lamu today.
The massive project will have the capacity to process 700,000 barrels of crude oil per day, making it one of the biggest planned refineries in Africa and the largest in East Africa.
Nigerian billionaire Aliko Dangote will join Ruto for the groundbreaking ceremony as Kenya moves to begin construction of the facility.
The refinery is expected to supply petroleum products to Kenya and other countries in East Africa, reducing the region’s reliance on imported refined fuel.
The Government expects the project to create more than 60,000 jobs, including thousands of skilled positions, while also opening opportunities in related industries.
The refinery will form part of a wider industrial complex expected to support petrochemicals, chemicals, fertiliser, logistics and other businesses around Lamu.
The project is also expected to strengthen the role of Lamu Port and the LAPSSET corridor as Kenya seeks to position the Coast as a major energy and industrial hub.
Heavy equipment for the project has already started arriving at the Port of Lamu, signalling preparations for construction.
Ruto has strongly backed the project and recently toured Dangote’s existing 700,000-barrel-per-day refinery in Nigeria ahead of the Lamu launch.
The President has described the Kenyan refinery as a major investment in energy security, industrialisation and value addition.
However, the project faces a land dispute involving residents who have moved to court over ownership and compensation claims.
A Malindi Environment and Land Court has ordered parties to maintain the status quo on disputed land pending a hearing scheduled for October 14. The court did not expressly stop Wednesday’s groundbreaking ceremony.
Another major question is whether Kenya and the region can provide enough crude oil to keep the refinery operating at full capacity.
Kenya’s oil production is expected to remain far below the refinery’s 700,000-barrel daily capacity, meaning the facility will have to source much of its crude from outside the country.
The refinery is expected to take about three years to complete and could become a major supplier of petrol, diesel, aviation fuel and other petroleum products to the region.