By Brian Kiprono - Reporter
Kenya, July 8, 2026 - President William Ruto has appointed Deputy President Kithure Kindiki to lead the government's coordination of the proposed Ksh2.2 trillion East African oil refinery, signalling that preparations for one of Kenya's largest private investments are entering the final stages.
Speaking at State House on Wednesday during the signing of the Sovereign Wealth Fund Act, 2026, Ruto said the government had established an implementation committee to work with investors and oversee the delivery of the refinery, which will be built in Lamu.
"I have asked the Deputy President to chair the government committee that is going to work with private investors and players for what will be one of the largest investments in our country, the investment in the East African oil refinery," Ruto said.
The President revealed that the government has already set a date for the groundbreaking ceremony, although he did not disclose when construction would officially begin.
"It is a Ksh2.2 trillion investment in our country. We have already set up a date for the groundbreaking, for your information," he added.
The announcement comes after Dangote Industries reportedly settled on Lamu Port as the location for the refinery, ending months of speculation over whether the multi-billion-shilling project would be established in Kenya or neighbouring Tanzania.
The refinery, spearheaded by Nigerian billionaire Aliko Dangote, is expected to become one of the largest energy investments in East Africa.
According to the company, construction will take between 30 months and three years, after which the facility is expected to begin processing crude oil for Kenya and the wider region.
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Once operational, the refinery is projected to process more than 700,000 barrels of crude oil per day, significantly reducing East Africa's dependence on imported refined petroleum products.
The facility is expected to supply fuel to Kenya, Uganda, Tanzania, South Sudan and other regional markets, helping shield the region from global supply disruptions.
The government has already allocated Ksh21.5 billion in seed capital for the project in the 2026/27 Budget, with the remaining financing expected to come through a public-private partnership (PPP) arrangement.
Dangote Industries said the project will be funded through a mix of internally generated revenue, bond issuances and proceeds from a planned Initial Public Offering (IPO), reducing the need for external borrowing.
The appointment of Kindiki to spearhead government coordination underscores the strategic importance Nairobi has attached to the project, which is expected to transform Kenya into a regional energy hub while creating thousands of jobs and attracting billions of shillings in investment.