Middle East Fuel Disruptions Sparked Lamu Refinery Plan, President Ruto Says

NAIROBI, Kenya, Oct 2 — President William Ruto has detailed how the Sh2 trillion Dangote East Africa Oil Refinery project was conceived, saying disruptions to global oil supplies exposed Kenya’s vulnerability to fuel shortages.

Speaking to journalists at State House, Mombasa, on Thursday evening, a day after the project’s groundbreaking ceremony in Lamu, Ruto said he began exploring the idea after Kenya experienced difficulties accessing fuel amid tensions in the Middle East.

He cited disruptions around the Strait of Hormuz, a major global oil transit route, as one of the developments that highlighted the need for Kenya to strengthen its petroleum security.

Ruto said he subsequently sent officials from his office to meet Nigerian businessman Aliko Dangote and visit one of his refineries.

The officials returned and recommended that further studies be conducted before the project could proceed.

“Huu ni mradi ambao nilifikiria kwa muda. Na kwa sababu tulianza kupata changamoto hapa ya mafuta wakati matatizo yalitokea kule Middle East,” Ruto said.

Ruto said he later engaged Ugandan President Yoweri Museveni and Tanzanian President Samia Suluhu Hassan on the proposed refinery and possible locations.

He said Tanga in Tanzania was initially considered because Uganda had planned to transport its crude oil through a pipeline to the Tanzanian port.

However, further studies involving Dangote and Kenyan officials identified Lamu as a more suitable location.

Ruto said the depth of the Indian Ocean at Lamu was a key factor because the refinery will require large vessels to transport crude oil.

“Sababu kubwa ya Lamu kujengwa ni kwamba pale Lamu bahari iko na draft nzuri. Depth ya pale ni nzuri kwa sababu ile meli ambayo itakuwa inabeba mafuta ni nzito,” he said.

The President said discussions with Dangote gained momentum after the Nigerian businessman attended the Africa We Build Summit in Nairobi.

Ruto said he used the opportunity to ask Dangote to consider establishing an oil refinery in Kenya, with negotiations subsequently progressing to Wednesday’s groundbreaking ceremony.

Ruto said the government has already set aside 9,000 acres for the development and intends to acquire another 3,000 acres.

He said a 5,000-acre Special Economic Zone will also form part of the wider development.

The President said the project would transform Lamu into a major industrial centre, with industries such as plastics and petrochemicals expected to emerge around the refinery.

He said the development would create employment, attract investment and expand business opportunities for residents of the Coast region.

“Pale kutakuwa na city kubwa sana na uchumi wa taifa letu utaridhika, uchumi ya watu wapwani utaimarika na uchumi ya watu wa Lamu vilevile utainuka,” Ruto said.

Ruto described the refinery as a major investment, claiming that its value was equivalent to 12 per cent of Kenya’s GDP.

He also said the project would significantly boost foreign direct investment (FDI) into the country.

According to Ruto, Kenya’s FDI had increased from USD1.6 billion when he assumed office to USD3.1 billion in 2025.

He projected that FDI could rise to between USD6 billion and USD7 billion annually over the coming years.

The figures and projections were presented by the President during the media briefing.

Ruto said the refinery would provide additional petroleum-processing capacity while supporting the development of industries around Lamu.

The project is expected to have a processing capacity of 700,000 barrels of crude oil per day, according to details provided during the groundbreaking ceremony.

The President said the wider development would position Lamu as an important industrial and energy hub while supporting Kenya’s efforts to strengthen its petroleum security.