Nigerian billionaire Aliko Dangote and Kenya’s President William Ruto are set to break ground on a massive $16 billion oil refinery in Lamu, located on Kenya’s northern coast.
Once operational, the facility is designed to process 700,000 barrels of crude oil daily, positioning it as the largest industrial undertaking in East Africa by capacity. However, the groundbreaking ceremony comes amidst local protests, with residents demanding greater compensation for land acquired for the project.
Addressing the demonstrations, Dangote dismissed the opposition as maneuvers by local and international market players, reaffirming that the refinery will proceed on schedule and be completed by 2030. He emphasized that the project represents a historic milestone for Kenya, surpassing the $5.1 billion Standard Gauge Railway as the country’s most significant infrastructure development since independence.
During an interview with the BBC’s Focus on Africa, Dangote contested the compensation claims, stating that the company only utilized the specific portion of land allocated by the government. “Have you ever seen people demonstrating against themselves in terms of development?” he questioned, remaining unfazed by the public outcry.
The project is expected to generate 60,000 jobs at peak construction, with Dangote highlighting the broader economic benefits for the local population. “Are we going to bring robots? Of course, the people will benefit,” he stated.
Critics have raised concerns over the refinery’s location in Kenya, a nation that is not a major oil producer, suggesting instead that Tanzania or Uganda—both advancing in oil export infrastructure—would be more logical choices.
Kenya’s Energy and Petroleum Minister, Opiyo Wandayi, countered these concerns, explaining that refineries source crude oil from global markets rather than relying strictly on local production. “Refineries get crude oil from the market. And the market is open,” Wandayi noted.
Dangote echoed this sentiment, pointing to Singapore as a prime example of a global hub with extensive refining capabilities despite producing no domestic oil. “Singapore doesn’t produce a single drop of oil, yet they have a lot of refineries,” Dangote added.
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