By James Murimi - Reporter
Kenya, 28 July 2026 - Kenya has intensified efforts to secure the establishment of a proposed KSh 2.2 trillion East Africa oil refinery, with the government engaging regional partners to build consensus on the location of what could become one of Africa's largest energy investments.
Deputy President Kithure Kindiki on Tuesday said the government was working closely with East African partner states and investors to pave the way for the refinery, backed by Nigerian billionaire industrialist Aliko Dangote, saying the project would transform the region's energy security and industrial capacity.
Speaking after chairing a high-level meeting of government ministries, departments and agencies at Harambee House Annex in Nairobi, Prof. Kindiki said Kenya was positioning itself to host the strategic investment while consultations with regional stakeholders continue.
"Kenya is keen and is engaging regional partners for consensus on that facility being hosted in this region. It will create jobs and cushion our economy and the region from economic shocks arising from sharp increases in oil prices, such as those witnessed following the closure of the Strait of Hormuz," he said.
The Deputy President revealed that Lamu has emerged as the preferred Kenyan location for the refinery, although comprehensive feasibility studies are underway to determine whether it is suitable for the multibillion-shilling investment.
He expressed optimism that the technical assessment would be concluded soon to allow the project to move to the next phase.
"We are hoping that the feasibility work will end quickly and all stakeholders will buy into the project so that we can establish this major investment. It will create jobs, establish a petrochemical hub for the region, cushion our economies from oil price spikes and accelerate our industrialisation agenda," Prof. Kindiki said.
President William Ruto has tasked the Deputy President with coordinating Kenya's engagement with investors, regional governments and other stakeholders ahead of the project's implementation.
Tuesday's meeting brought together senior government officials, including National Treasury Cabinet Secretary John Mbadi, Roads and Infrastructure Cabinet Secretary Davies Chirchir, Energy Cabinet Secretary Opiyo Wandayi, Lands Cabinet Secretary Alice Wahome, Principal Secretaries and other senior officials to review the legal, regulatory and administrative framework required to facilitate the refinery's development.
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Prof. Kindiki directed ministries and government agencies involved in the project to fast-track their respective assignments to avoid unnecessary delays as feasibility studies continue.
"This is work in progress, and all ministries, departments and agencies understand their responsibilities. As the feasibility process progresses, we will continue updating the country on the milestones achieved," he said.
He also appealed for patience from stakeholders, noting that additional consultations would be conducted to ensure transparency and consensus before construction begins.
Describing the refinery as a strategic regional investment, the Deputy President said the project extends beyond Kenya and requires close cooperation among East African governments and international investors.
"This is not entirely a Kenyan project. It is an international project involving regional partners and foreign investors. It is a sensitive and strategic undertaking that must be handled carefully, but it is crucial for Kenya and the wider East African region," he said.
If approved, the refinery is expected to strengthen regional fuel security, reduce dependence on imported refined petroleum products, stimulate manufacturing through a petrochemical industry, and create thousands of direct and indirect jobs across the East African Community.
Kenya Pushes for KSh 2.2 Trillion East Africa Oil Refinery, Builds Consensus With Partners
Comprehensive feasibility studies are underway to determine whether Lamu is suitable for the multibillion-shilling oil refinery investment.