President William Ruto has appointed Deputy President Kithure Kindiki to chair a high-level government committee that will oversee the implementation of the planned Sh2.2 trillion East African oil refinery in Lamu, as the government moves to fast-track one of Kenya’s largest private investments.
The appointment follows confirmation by Nigerian billionaire Aliko Dangote that Lamu has been selected as the site for the 700,000-barrel-per-day refinery, ending months of speculation over whether the project would be established in Kenya or Tanzania.
Speaking at State House on Wednesday after assenting to the Sovereign Wealth Fund Bill, President Ruto said the government had already established implementation structures to coordinate the project in partnership with private investors.
“I have asked the Deputy President to chair the government committee that is going to work with private sector investors and players for what will be one of the largest investments in our country, the investment in the East African oil refinery,” President Ruto said.
The President also disclosed that the government had already agreed on a date for the groundbreaking ceremony, although he did not reveal when construction would officially begin.
“It is a Sh2.2 trillion investment in our country. We have already set up a date for the groundbreaking, for your information,” he added.
The refinery is expected to significantly boost Kenya’s energy security by reducing dependence on imported refined petroleum products while positioning the country as a regional energy hub serving markets across East Africa, including Uganda, Tanzania and South Sudan.
The 2026/27 Budget has allocated Sh21.5 billion as government seed capital for the project, with the bulk of the financing expected to come from private investors under a public-private partnership arrangement.
Dangote Industries has indicated that the refinery will process more than 700,000 barrels of crude oil per day, making it one of Africa’s largest refining facilities. Construction is expected to take between 30 months and three years before commercial operations commence.
The announcement follows confirmation by Dangote Industries Vice President for Oil and Gas Edwin Devakumar that Lamu had been selected as the final location for the refinery after an evaluation that also considered Tanzania. Dangote recently informed Tanzanian President Samia Suluhu Hassan of the decision while inviting Tanzania to participate in the investment.
The proposed refinery mirrors Dangote’s flagship 650,000-barrel-per-day refinery in Nigeria, which began operations in 2024. The Nigerian conglomerate plans to expand its domestic refining capacity to 1.4 million barrels per day by 2028.
Kenyan officials say the Lamu refinery will stimulate industrialisation, create thousands of jobs, attract supporting industries and strengthen regional fuel supply chains, helping East Africa reduce its vulnerability to global petroleum market disruptions.
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