Nigerian business magnate Aliko Dangote and Kenyan President William Ruto have launched a $16 billion oil refinery project in Lamu, along Kenya’s northern coastline.
The facility is expected to process 700,000 barrels of crude oil daily upon completion, making it the largest industrial development of its kind in East Africa.
Operations are scheduled to begin by 2030, with construction expected to start on November 1.
The inauguration attracted several African leaders, including the presidents of Uganda, Ethiopia, Togo and Benin.
According to Reuters, Dangote has proposed allocating a combined 30 per cent ownership stake to regional governments.
Speaking to the BBC, the billionaire entrepreneur said the project would proceed despite demonstrations by some residents seeking additional compensation for land acquired for the development.
He maintained that the company had taken only the portion required from land provided by the government.
However, environmental concerns have emerged over the proposed facility.
Walid Ali, co-founder of the Save Lamu campaign, called for the release of the environmental impact assessment to enable communities to examine proposed measures to address potential damage.
Dangote estimates that construction could generate 60,000 jobs at its peak, alongside wider economic opportunities for surrounding communities.
Kenya’s Energy and Petroleum Minister, Opiyo Wandayi, defended the choice of location, explaining that crude oil could be sourced from international markets rather than relying exclusively on regional production.
The development will also feature a 1,000-megawatt power station intended to supply electricity to the refinery and other businesses expected to operate in the area.
The project is expected to become Kenya’s largest infrastructure investment since independence, exceeding the $5.1 billion Standard Gauge Railway initiative.
Although the refinery could eventually increase domestic fuel supply, its impact on pump prices will depend partly on international crude oil costs and other market factors.
Dangote described the initiative as an opportunity to strengthen African industrial cooperation and expand local processing capacity.
The Lamu facility represents his biggest proposed investment outside Nigeria, where his existing refinery also processes 700,000 barrels of crude oil daily.
The businessman is pursuing further expansion of his Nigerian facility after offering 4.1 million ordinary shares to raise up to $2.1 billion earlier this month.
By: Magdalene Agyeiwaa Sarpong