Nigerian billionaire Aliko Dangote and Kenyan President William Ruto have broken ground on a $16 billion oil refinery in Lamu, launching one of East Africa’s largest planned energy projects.

The refinery is expected to take about 40 months to complete and will have the capacity to process up to 700,000 barrels of crude oil per day.

Once operational, the facility is expected to produce petrol, diesel, and jet fuel for Kenya and other markets across East Africa.

Dangote said the project would help reduce the region’s dependence on imported refined petroleum products.

$16 Billion Lamu Refinery Faces Land Dispute

The launch comes amid an ongoing land dispute involving 133 residents of the Chandavai area in Lamu.

The residents say part of the refinery site covers ancestral land that their families have occupied and farmed for generations. They have raised concerns over compensation, resettlement and environmental assessments linked to the development.

A Malindi Environment and Land Court ordered that the status quo on the disputed land be maintained pending a hearing scheduled for October 14.

Dangote Group said the court order would not prevent the groundbreaking ceremony, although it acknowledged that some activities at the site could be affected before the case is heard.

Environmental Concerns Raised Over Lamu Project

Environmental groups have also raised concerns about the potential impact of the refinery on Lamu’s coastal ecosystem.

The project is expected to supply fuel across East Africa and forms part of Dangote’s broader expansion of refining operations beyond Nigeria.

Honeywell Technologies has been selected to provide engineering services, technology licensing and equipment for the Lamu refinery.