The long-planned East Africa Oil Refinery in Lamu is set for a groundbreaking next week, with Deputy President Kithure Kindiki saying the project could create about 50,000 jobs.
President William Ruto is expected to lead the September 30 ceremony, which the government is presenting as a major step in its plans to expand Kenya’s industrial and energy sector.
Kindiki said preparations for the event had been completed after a final meeting involving officials responsible for security, logistics and protocol.
“We have finalised our routine meeting on preparations for the launch of the East Africa Oil Refinery project, which is going to take place on September 30, 2026 in Lamu,” he said on Tuesday.
The proposed refinery is expected to have a processing capacity of 700,000 barrels of crude oil a day. If completed as planned, it would be the largest refinery in East Africa. The project is expected to take about three years to complete.
A new industrial hub
The government says the refinery will form part of a wider industrial complex in Lamu, with links to storage, transport, manufacturing and petrochemical activities.
Kindiki said the project could help reduce the amount of foreign currency Kenya spends on imported petroleum products.
“This project will reduce pressure on our foreign exchange because we spend a lot of money importing oil,” he said.
Kenya currently depends heavily on imported refined petroleum products. A government energy policy document says petroleum products account for a significant share of the country’s energy use and that Kenya relies on imports for its refined petroleum needs.
The refinery is also being linked to the Lamu Port-South Sudan-Ethiopia Transport corridor, with the government hoping the port and related infrastructure will support the movement and storage of petroleum products.
Jobs promise for Lamu and Coast
Kindiki said the project would create employment and business opportunities for communities in Lamu and the wider Coast region.
“We are very optimistic that this project will help us create 50,000 jobs in the region,” he said.
The figure is lower than some other government estimates. President Ruto and recent government statements have referred to more than 60,000 jobs linked to the wider refinery and industrial development.
The government has said employment would extend beyond the refinery itself, covering construction, engineering, logistics, manufacturing and other businesses expected to develop around the facility.
Kindiki said the project would also create opportunities for local businesses.
“We are also excited because this project is going to empower the communities in Lamu and the coastal region in terms of job creation and other opportunities,” he said.
Refinery faces a key supply question
The project is also tied to Kenya’s plans to develop its domestic oil industry.
Kindiki said the government expected local oil production to begin towards the end of the year. However, previous energy-sector assessments have placed Kenya’s first oil production timeline later, with the International Energy Agency noting plans aimed at first production in 2028.
That difference makes the refinery’s future crude supply an important issue as the project moves towards construction.
The government has previously planned a crude oil pipeline linking the South Lokichar Basin in Turkana to Lamu. The proposed pipeline would transport crude to the coast for export and potentially support future refining activities.
The refinery is being promoted as part of a broader petroleum value chain linking crude production, processing, storage and distribution.
Kindiki said the benefits would extend beyond Lamu.
“This is an ecosystem that is going to change Lamu, the Coast, Kenya and the wider region,” he said.
The government expects regional leaders to attend the September 30 groundbreaking, alongside residents and local communities.
For Lamu, the next stage will be whether the ambitious plans for jobs, industrial activity and regional energy supply translate into construction and long-term economic activity on the ground.
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