Aliko Dangote and Kenyan President to Begin Construction of $16 Billion Oil Refinery in Lamu

Nigerian billionaire Aliko Dangote and Kenya's President William Ruto are set to break ground on a $16 billion oil refinery in Lamu, located on Kenya's northern coast. Upon completion, the refinery is expected to process 700,000 barrels of crude oil per day, making it East Africa's largest industrial project by capacity. Ahead of the launch, some local residents have protested, demanding more compensation for land used for the refinery. Dangote dismissed the protests as games played by local marketers and international players, asserting that the refinery would proceed as planned and be ready by 2030. The refinery is set to become the only one in East Africa and is Kenya's largest infrastructure project since independence, surpassing the $5.1 billion Standard Gauge Railway. In an interview with the BBC, Dangote disputed the compensation claims, stating that the company took only the portion of land it needed from what the government made available. Walid Ali, co-founder of the Save Lamu campaign group, expressed concerns about the environmental impact of the project on the local community and requested the findings from the environmental impact assessment. Dangote stated that the refinery would create 60,000 jobs during construction, with benefits extending beyond those directly employed. Critics have questioned the decision to build the refinery in Kenya, which is not an oil-producing country, suggesting alternatives like Tanzania or Uganda. However, Kenya's Energy and Petroleum Minister Opiyo Wandayi noted that refineries can source crude oil from the open market. The refinery will also include a 1,000-megawatt power plant, which Dangote sees as essential for industrialization across Africa. He has approximately $50 billion worth of projects planned, including the development of 10,000 megawatts of power generation capacity across Africa by 2030. The Lamu refinery project is expected to help lower fuel prices in Kenya, although international crude oil prices will still significantly influence consumer costs. Construction is scheduled to begin on November 1.