East Africa is making strides towards energy independence with a new $16 billion refinery in Kenya, although concerns are growing over the potential environmental impact of an expanding oil sector.
At a groundbreaking ceremony in Lamu on Wednesday, Nigerian billionaire Aliko Dangote joined Kenyan President William Ruto and several other African leaders to mark the start of construction on the Dangote East Africa Petroleum Refinery. Once operational, the facility is expected to process 700,000 barrels of crude oil per day, producing petrol, diesel, and jet fuel for Kenya and the wider East African market.
“This is Africa coming together to build Africa,” said Dangote. “Today, we are not just breaking ground for a refinery but for a new chapter in Africa’s industrial journey.” He highlighted the irony of Africa, a major oil producer, having to import refined oil products.
The continent produced about 6.8 million barrels of crude oil daily in 2024, yet refining capabilities remain limited, forcing nations to rely on imported fuels. Dangote believes increased refining could make Africa largely fuel self-sufficient by 2030.
While the Lamu refinery could spur independence from foreign oil suppliers, some experts, such as Victor Abuso from RFI’s Kiswahili service, suggest the project raises questions about Kenya’s current ability to support such a large operation given its inadequate oil production. Initially, the refinery will import crude from regions like the Middle East before gradually sourcing from local producers as output increases.
The complex will also include a 1,000-megawatt power facility designed to provide electricity for the refinery and feed surplus power into the national grid.
However, this ambitious project has opened up debates about environmental and social concerns. Lamu, which is home to a UNESCO World Heritage site, faces potential risks from pollution and oil spills that could harm local fishing and tourism businesses.
Furthermore, land rights are contentious, with local residents filing legal claims to protect their ancestral properties from being developed without proper consultation. Although a court allowed the groundbreaking to proceed, a hearing regarding the residents’ concerns is set for 14 October.
Additionally, the refinery’s location raises security issues, as Lamu is near the border with Somalia, a region affected by terrorist activities. Reports indicate that Kenya may need to increase military presence in the area to ensure the safety of the refinery and its surroundings. President Ruto has assured that land and environmental matters will be handled lawfully and fairly.
