Dangote Commences Construction of Sh2 Trillion Lamu RefineryConstruction of Dangote’s Sh2 trillion oil refinery in Lamu has officially commenced, representing one of Kenya’s largest private investments.The $16 billion refinery has the potential to process up to 700,000 barrels of crude oil per day when operational, being one of East Africa’s largest petroleum projects.
The groundbreaking ceremony took place in Lamu on 30th of September, with Dangote Group Chairman Aliko Dangote and other African leaders attending the event.The refinery is anticipated to produce petroleum products such as diesel, petrol and jet fuel for Kenya and other countries in the East African region.The project is expected to take approximately 40 months to be completed, with operations planned to commence by around 2030. The refinery is expected to boost the region’s ability to process crude oil locally and limit the heavy reliance on imported refined petroleum products.Dangote has offered East African governments a combined 30 per cent stake in the refinery. Kenya has been allotted a 10 per cent stake, while other regional countries have been offered opportunities for investment.
The project is also expected to create employment. Reports prior to the groundbreaking had stated that the refinery could generate about 60,000 jobs.For the completion of the refinery, Dangote has partnered with Honeywell Technologies, which will provide engineering services, technology licensing and equipment for the facility.The refinery project has, however, faced legal challenges from residents regarding land ownership and compensation.
A court has ordered the status quo to be maintained at the site pending further proceedings, with the case scheduled for October 14th.Lamu refinery is therefore set to become a major component of Kenya’s petroleum and manufacturing sector, with the planned capacity expected to serve the local and wider East African fuel market