Ruto: Govt to Deploy Assets, Infrastructure Fund for Sh2.2tn Lamu Refinery Investment

NAIROBI, Kenya Sep 30 – President William Ruto has said the Kenyan government will take a stake in the planned Sh2.2 trillion Lamu oil refinery, with the State expected to deploy public assets and use the National Infrastructure Fund to invest in the project.

Ruto said the government would participate directly in the ownership of the refinery, which is being developed by Nigerian billionaire Aliko Dangote.

“The Government of Kenya is going to have a stake in the refinery. We are going to deploy our assets and use the National Infrastructure Fund to invest in this refinery,” Ruto said.

The announcement places the government among the prospective investors in the multi-trillion-shilling project, which is expected to become a major component of Kenya’s petroleum and industrial development strategy.

Ruto said the State would use its existing assets as part of its contribution to the refinery investment.

He did not immediately disclose the value of the assets that would be deployed or the size of the government’s proposed stake.

The President said the National Infrastructure Fund would also be used to mobilise resources for investment in the project.

The proposed State participation comes as the government encourages Kenyans and institutional investors to take part in the refinery through the Nairobi Securities Exchange (NSE).

Ruto has described investors as partners in Kenya’s development and urged Kenyans to participate in the investment opportunity.

The refinery is planned for Lamu and is expected to have a processing capacity of up to 700,000 barrels of crude oil per day once completed.

The project is being promoted as a major regional energy and industrial investment, with its developers targeting the Kenyan and wider East African petroleum market.

The refinery is also expected to support associated industries and create employment opportunities during construction and operations.

Dangote has said the project could create about 60,000 jobs, while a training school is planned in Lamu to equip local engineers with skills required to work at the refinery and in related operations.

The proposed refinery is also expected to attract investment from other stakeholders as the government seeks to position Lamu as a major energy and industrial hub.

Ruto’s announcement of State participation signals the government’s intention to have a direct financial interest in the project rather than only provide regulatory and policy support.

The President has repeatedly linked the refinery to Kenya’s broader industrialisation agenda, arguing that large-scale investments in energy infrastructure can create employment, expand local supply chains and increase economic activity.

The planned investment comes amid legal and community concerns surrounding land earmarked for the refinery.

Some residents have raised issues relating to land ownership, compensation and public participation, while legal proceedings have been filed challenging aspects of the project.

The government has maintained that the refinery is an important strategic investment for Kenya and has continued to back its development.

With construction preparations advancing, the government’s proposed equity participation adds another dimension to the project as Kenya seeks to attract capital while ensuring that the State and its citizens benefit from the refinery.

Ruto said the government would continue to support the project and encourage Kenyans to participate in its ownership.