Nigerian billionaire and Africa’s richest man Aliko Dangote with Kenyan President William Ruto have officially broken ground on a $16 billion oil refinery in Lamu, on Kenya’s northern coast.
Upon completion, the facility is expected to process 700,000 barrels of crude oil a day, making it the largest industrial project by capacity in East Africa. The launch was attended by the leaders of Uganda, Ethiopia, Togo, and Benin, with Dangote offering regional governments a combined 30 percent stake in the venture to encourage cross-border cooperation.
Dangote framed the project as a major step forward for the continent’s self-reliance. “This is Africa coming together to build Africa,” he said during the launch. “Today we are not simply breaking ground for a refinery; we’re breaking ground for a new chapter in Africa’s industrial journey to a brighter future.”
He pointed to his existing operations as proof of concept. “Lekki proved that it can be done; Lamu must prove that it can be repeated,” he added. President Ruto echoed this sentiment, calling the project a declaration that Africa will increasingly finance, build, and add value to its own resources at home.
However, the massive investment has not been welcomed by everyone. Ahead of the launch, some residents took to the streets to demand better compensation for the land used for the refinery.
Speaking to reporters, Dangote dismissed these protests as mere games played by local marketers and international competitors. He insisted the project would stay on track for its planned 2030 completion date and that the company only took the specific portion of land it needed from what the government made available.
“To come and say some people are demonstrating, demonstrating about what?” Dangote asked. “Have you ever seen people demonstrating against themselves in terms of development?”
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Despite these assurances, local advocacy groups remain deeply concerned about the project’s ecological footprint. Walid Ali, co-founder of the Save Lamu campaign group, highlighted the lack of transparency regarding the environmental impact.
“We are asking for the findings from the environmental impact assessment so that we can see what mitigation measures are being proposed,” Ali said. “This is not the first project where we have seen environmental concerns being overlooked.”
Critics have also questioned the decision to build a massive refinery in Kenya, which is not currently an oil-producing country. Some have suggested the project would make more sense in Tanzania or Uganda.
Dangote pushed back on this criticism, citing Singapore as a global example. “Singapore doesn’t produce a single drop of oil, yet they have a lot of refineries,” he noted. Kenya’s Energy Minister also clarified that refineries simply source crude oil from the open global market, meaning local production is not a strict requirement.
Beyond refining, the Lamu project will include a 1,000-megawatt power plant. Dangote views reliable electricity as a critical constraint on industrialisation across Africa, and he plans to use this facility to support other industries expected to set up in the area. He estimates the project will create 60,000 jobs at the height of construction.
The tension has now moved to the courtroom. A group of 133 Lamu residents has approached Kenya’s High Court in a bid to stop the construction work entirely. As a result, excavation and construction on the disputed land are currently restricted until the next court hearing on October 14.
While Dangote promises a future of jobs and reliable power, the project must first navigate the legal and social hurdles of the community it aims to transform.
Promise Idoko is Junior Reporter working with moderncrux He covers global politics and international affairs. Based in Nigeria,
