NAIROBI, Kenya, Oct 22 — Principal Secretary for Industry Juma Mukhwana has defended the proposed Dangote East Africa Petroleum Refinery in Lamu, describing the investment as an opportunity to accelerate manufacturing, industrialisation and job creation in Kenya.
Speaking during a media briefing hosted by the International Policy Group (IPG) in Nairobi on Thursday, Mukhwana said the project presented an opportunity for Kenya and the wider African continent by stimulating industries linked to refining and expanding the country’s industrial capacity.
“The project should be seen in the context of what it can do to industrialise this country,” Mukhwana said, arguing that the refinery could create opportunities beyond fuel processing by supporting a wider manufacturing ecosystem.
Mukhwana said the project should be viewed alongside other planned and ongoing investments along the coast and elsewhere in the country.
He cited the Galana Kulalu agricultural project, Vipingo Industrial Park, Dongo Kundu Special Economic Zone and DP World Industrial Park in Mombasa as developments that could contribute to an expanding manufacturing ecosystem. He also pointed to industrial projects and special economic zones planned or under development in other parts of the country.
The PS said Kenya needed investments of this scale to take advantage of regional markets under the East African Community, COMESA and the African Continental Free Trade Area.
According to Mukhwana, limited investment in large-scale manufacturing has constrained trade across these markets despite their potential to support industrial production and wider distribution of locally manufactured goods.
The Dangote East Africa Petroleum Refinery was formally launched on September 30, 2026, when President William Ruto and Dangote Group President and Chief Executive Officer Aliko Dangote led the groundbreaking ceremony in Mokowe, Lamu County.
The KSh2.2 trillion (about US$16 billion) project is designed to process up to 700,000 barrels of crude oil per day, making it one of the largest refinery projects in Africa. The wider industrial complex is expected to include a 1,000-megawatt power plant as well as petrochemical, fertiliser and chemical manufacturing facilities.
The project is expected to create about 60,000 direct and indirect jobs, while a training school planned by Dangote is expected to equip 1,000 people from Lamu with skills for opportunities arising from the refinery and associated industries.
At the groundbreaking, Ruto described the investment as “bigger than a refinery”, saying it would strengthen energy security, industrialisation and regional integration.
The President said the refinery would also provide an industrial anchor for the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor.
“A corridor without commerce is just a road. A port without industry is just a harbour,” Ruto said, arguing that the refinery would give both the port and the corridor a stronger economic purpose.
Ruto also said the project was expected to inject more than KSh2 billion into the economy each month through workers’ wages during construction, while urging technical institutions and universities to prepare young Kenyans for opportunities in engineering, welding, technical services and management.
Dangote said the project would go beyond refining petroleum and create a broader industrial ecosystem covering energy, petrochemicals, logistics, engineering, marine services, manufacturing, technology and small and medium-sized enterprises.
“We are not here merely to build tanks, pipelines, processing units and jetties. We are here to help build an industrial ecosystem,” Dangote said at the groundbreaking.
He pledged that the refinery would be commissioned within 40 months, while announcing plans for a training school in Lamu that will train 1,000 local people, including engineering diploma and degree holders.
The refinery is intended to serve Kenya and wider Eastern African markets, strengthening the region’s refining capacity and reducing dependence on imported petroleum products.
Economic and environmental concerns
Mukhwana also addressed concerns surrounding environmental protection and public participation, acknowledging that Kenya’s Constitution provides for public involvement in decision-making.
However, he argued that environmental considerations should be weighed alongside the country’s economic interests.
Expressing his personal view, Mukhwana questioned what he described as an imbalance in global discussions on carbon emissions, arguing that African countries should also be allowed to develop their industries and utilise their natural resources.
To illustrate his argument, Mukhwana cited Kenya’s coal resources in Kitui and referred to past legal challenges over proposed coal mining in Lamu.
He questioned why Kenya continued importing coal from Tanzania, Mozambique and South Africa while its own resources remained undeveloped.
He also claimed that Kenyan steel and cement industries import coal worth approximately KSh30 billion annually.
Mukhwana acknowledged that the refinery project carried risks but said he did not consider them insurmountable.
He urged investors to consider opportunities around the proposed development, arguing that supporting infrastructure, including roads and the Standard Gauge Railway, could help connect industrial centres and improve the movement of goods.
He added that such investments could create employment opportunities for young people.
IPG calls for evidence-based debate
IPG Chief Executive Officer Dr Kenneth Orengo said the debate around the Lamu refinery must be guided by verifiable facts, credible evidence and informed analysis rather than political interests, speculation or sensationalism.
“In an environment where public opinion can be shaped more by emotional narratives than objective realities, a lack of information can distort the national debate, discourage potential investors, and jeopardise opportunities for economic growth, industrialisation and employment creation,” Orengo said.
He urged the government to strengthen its governance capacity by engaging key stakeholders, including civil society organisations, which he said play a critical role in promoting accountability, transparency and constructive public engagement around government-led development projects.
“It is precisely against this backdrop that IPG is initiating these strategic public and stakeholder engagements,” he said.
Orengo was speaking during an IPG media breakfast forum attended by experts and stakeholders to analyse the strategic opportunities presented by the Lamu and Dangote refinery projects, as well as their execution risks and regional implications.
The Lamu project has attracted attention because of its scale and its potential impact on Kenya’s energy security, industrialisation and regional trade. It has also faced concerns over land ownership, compensation and environmental impact, with local residents pursuing legal and other avenues over the development.
Mukhwana said the government remained optimistic about the project’s potential and encouraged continued engagement among policymakers, industry stakeholders and investors on how to maximise the economic opportunities associated with the refinery and related developments.