Key facts
- Aliko Dangote and Kenyan President William Ruto will break ground on a $16 billion oil refinery in Lamu, Kenya.
- The refinery is expected to process 700,000 barrels of crude oil daily.
- The project includes a 1,000-megawatt power plant.
- Dangote dismissed land compensation protests as minor disruptions.
- Construction is due to begin on November 1.
- The refinery is planned to be ready by 2030.
Nigerian billionaire Aliko Dangote and Kenyan President William Ruto are set to break ground on a $16 billion oil refinery in Lamu, on Kenya's northern coast. The project, expected to be East Africa's largest industrial project by capacity, will process 700,000 barrels of crude oil daily upon completion and includes a 1,000-megawatt power plant. Construction is scheduled to begin on November 1, with the refinery planned to be ready by 2030.
Despite some local residents protesting for more compensation for land used for the refinery, Dangote dismissed the demonstrations as minor disruptions. He stated that the company only took the necessary portion of land made available by the government and questioned the purpose of protests against development. The refinery is Kenya's largest infrastructure project since independence, surpassing the Standard Gauge Railway.
Critics have questioned the choice of Kenya, a non-oil producing country, for the refinery's location. However, Kenya's Energy and Petroleum Minister Opiyo Wandayi and Dangote pointed out that refineries source crude oil from the global market, citing Singapore as an example of a nation without domestic oil production that hosts numerous refineries. Dangote also highlighted the importance of reliable electricity for industrialization, with the new power plant designed to support his operations and other industries in the region.
Dangote, who made his fortune in cement before expanding into oil, has other projects in the pipeline, including plans to develop 10,000 megawatts of power generation capacity across Africa by 2030. His refinery in Nigeria also has a processing capacity of 700,000 barrels a day, with plans to double it.