Nigerian billionaire Aliko Dangote and Kenyan President William Ruto launched construction of a $16 billion oil refinery in Lamu on September 30, 2026, proceeding despite ongoing protests and a legal challenge over the project site.
The refinery is designed to process 700,000 barrels of crude oil per day, making it the largest refining facility in East Africa. Construction is targeted for completion by 2030.
The launch went ahead while the dispute over the land remains unresolved. At least 133 Lamu residents, led by Salim Tima Swale, filed a lawsuit at the Malindi Environment and Land Court seeking to halt activities on the contested parcel, LR No. 13061, until compensation and a resettlement plan are determined.
The court ordered parties to maintain the status quo on the land until October 14, 2026, when the case will be heard, but declined to halt the groundbreaking ceremony.
Dangote dismissed the protests as "games played by local marketers and international players," insisting the refinery would go ahead as planned. Residents argue their families have farmed and lived on the land for generations and have not received adequate compensation or a clear resettlement plan.
Once operational, the refinery is expected to supply Kenya and neighbouring markets, including Uganda, Tanzania, Ethiopia, South Sudan, Rwanda, Burundi, and the Democratic Republic of Congo. Its location at Lamu Port, which features a deep-water port inaugurated in 2021, is reported to offer a logistical advantage for importing crude oil.
Dangote has offered Kenya, Ethiopia, and Rwanda a combined 30% equity stake in the project, valued at approximately $1.5 billion.
The project is expected to create about 60,000 jobs and includes a 1,000 MW power plant, with 500 MW planned for sale to the national grid.
For now, the launch is confirmed, but the land dispute remains unresolved. The court is scheduled to hear the residents' case on October 14, 2026, and details regarding compensation and resettlement are still pending.