African leaders broke ground on a $16 billion mega-refinery at Kenya’s coastal port of Lamu on Wednesday, launching an industrial project designed to process 700,000 barrels of oil daily and reduce the continent’s reliance on imported refined petroleum products.
The ceremonial launch brought together Kenyan President William Ruto, Ugandan President Yoweri Museveni, and Ethiopian Prime Minister Abiy Ahmed alongside Nigerian industrialist Aliko Dangote. Billed as the largest project of its kind in East and Central Africa, the coastal development is projected to take between 30 and 40 months to complete.
Industrial Scale and Regional Ambitions at Lamu
The refinery at Lamu will handle 700,000 barrels per day, a capacity larger than any similar facility in Europe. Ruto pointed to figures showing that Africa produced 6.8 million barrels of crude oil per day in 2024 while consuming 4.5 million barrels of refined petroleum products, surrendering the largest refining profits to overseas markets.
Dangote, who built Africa’s largest oil refinery in Nigeria, framed the venture as a direct correction to historical trade imbalances. For too long, our continent has actually been rich in resources but poor in value creation and addition. We have exported crude oil and imported refined products
, he told attendees during the groundbreaking.
“Such practice only leads to us exporting our jobs and opportunities that should remain on the continent and lead us into importing poverty into our nations. Africa cannot build lasting prosperity by exporting what it has and importing what it needs.”
Aliko Dangote, industrialist
Ruto stated on social media that the complex will strengthen regional energy security, reduce reliance on imports and bolster our foreign exchange. Beyond petroleum processing, the installation will function as an integrated industrial center featuring a 1,000-megawatt power facility—with half of its power directed back into the Kenyan grid—alongside a plastic factory and chemical and fertilizer manufacturing plants.
Logistical Hurdles and Sourcing Realities
The project launches into a shifting regional energy market. Uganda and Tanzania announced a rival $20-billion refinery and energy hub at the Tanzanian port of Tanga in August, though details for that competing venture remain sparse. Meanwhile, Uganda prepares to bring its first oil online in the coming weeks using a nearly completed pipeline to the Tanzanian coast built alongside TotalEnergies.
Because East African crude production is only just scaling up, the Lamu facility will initially rely heavily on seaborne imports. Dangote told reporters that the refinery will source crude oil from the Middle East, the United States, and other regions until domestic production in nations like Kenya and Mozambique expands.
Land Rights Lawsuits and Environmental Pushback
Local resistance has accompanied the project from its inception. Lamu residents filed a land rights lawsuit arguing that the designated construction site sits on their ancestral territory. Concurrently, environmental organizations, including Greenpeace, raised alarms over potential damage to Lamu Old Town, a UNESCO World Heritage site founded in the 12th century as the oldest Swahili settlement.
Environmental campaigners warn that heavy industrialization could disrupt a fragile marine ecosystem that hosts dugongs, whales, and several sea turtle species. Despite these challenges, Kenya’s High Court ruled that legal proceedings may continue while allowing the groundbreaking ceremony to proceed. Dangote dismissed the legal friction entirely, stating: We’re not really scared of people taking us to court. Anybody who wants to cause trouble, we are ready for his trouble and will give him a headache
.
To ease local anxieties, Ruto assured residents that environmental and property concerns will be handled lawfully and fairly as construction moves forward.