President William Ruto has given a new account of how the Dangote refinery was brought to Lamu. He said the idea was shaped by fears over fuel supply. Those fears grew during disruptions linked to tensions in the Middle East.
The planned refinery is valued at about KSh2.2 trillion in recent reports. It is expected to process up to 700,000 barrels of crude each day.
Middle East Crisis Sparked Plan
Ruto said the idea had been considered before the recent talks. It gained urgency after fuel supply risks were seen during Middle East tensions.
The Strait of Hormuz was cited as a key concern. The route is vital to global oil shipments.
“We started facing challenges with oil,” Ruto said.
He linked those concerns to events around Iran and the Strait of Hormuz. Officials were then sent to meet Aliko Dangote. They also visited his refinery in Nigeria. More research was then requested before a site was chosen.
Tanga Was First Considered
Tanga in Tanzania was initially considered. The option was linked to Uganda’s earlier plans for moving crude through Tanzania. Those plans had made Tanga a possible regional site.
Ruto said discussions were held with Ugandan President Yoweri Museveni and Tanzanian President Samia Suluhu Hassan.
Further studies later changed the direction. Lamu was then identified as the preferred site. Ruto said the depth of the sea was a major factor.
The deeper waters were seen as better suited to large oil tankers.
Talks Moved Forward
The project gained momentum after Ruto met Dangote in Nairobi. The meeting took place around the Africa We Build Summit. Discussions on the refinery were then advanced.
Ruto said talks had continued since April. The project was formally launched in Lamu on September 30. Dangote and several African leaders attended the groundbreaking.
Jobs and Industry Expected
The refinery is expected to support more than fuel production. Petrochemical industries could also be developed around it. Plastics and related businesses have been cited as possible areas.
The project is also expected to create jobs. Recent reporting has put possible direct and indirect jobs at about 60,000. The figure remains an estimate linked to the wider development.
Ruto said land had already been set aside for the project. He said about 9,000 acres had been secured. A further 3,000 acres could also be added. A Special Economic Zone has also been planned.
Questions Over the Agreement
The project has not been without controversy. Nairobi Senator Edwin Sifuna has asked for details of the agreement between Kenya and Dangote.
He said lawmakers had not seen the deal. He also called for proper parliamentary oversight. Ruto has said Parliament has a process for requesting government agreements.
He has urged lawmakers to use that procedure. The President has also defended the refinery as a major investment. The dispute has therefore moved beyond the project itself. Questions are also being raised about its terms.
Land Issues Remain
Land concerns have also been raised in Lamu. Some residents have challenged the development in court. They have raised concerns over land and community interests.
A court order has maintained the status quo on part of the land. The matter is due for further consideration in October. The government has said such concerns must be addressed lawfully.
Ruto has continued to back the investment. He has described it as important to Kenya’s energy and industrial plans.
A Regional Ambition
The refinery is being presented as more than a Kenyan project. It is expected to serve markets across East Africa. Crude from Kenya could also be supplied to the facility.
Ruto has said a pipeline linking Turkana to Lamu is being discussed. Other regional sources of crude are also being considered.
The project could also strengthen the Port of Lamu. It could create demand for transport and other services. More industries could then develop around the refinery.
For now, much of that remains ahead. The refinery still has to be built. Its wider economic impact will depend on its delivery and operation. For Ruto, the project is part of a push for greater energy security.
For critics, the terms and impact must be made clear. The next phase will show how those competing expectations are handled.
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