Nigerian billionaire Aliko Dangote and Kenyan President William Ruto have started construction on a $16bn oil refinery in Lamu.
The facility, when completed, will be processing 700,000 barrels of crude oil per day, making it the largest oil refinery in East Africa by capacity and Kenya’s largest infrastructure project since independence.
The groundbreaking ceremony was presided over by the Presidents of Uganda, Ethiopia, Togo and Benin. Dangote has opened the door for regional governments to own 30 percent of the refinery, according to Reuters. He expects the project to be completed by 2030 and said that it was part of Africa’s industrialization drive.
However, before the start of the event, some Lamu locals protested against the deal, demanding more compensation for the land being used for the refinery.
In addition, local activists are raising concerns about environmental impact of the refinery. Walid Ali, a co-founder of Save Lamu campaign groups said that he and his colleagues want the final report of the environmental impact assessment made public. Meanwhile, Dangote called compensation demands “a publicity stunt by local marketers and regional conspirators.”
Another criticism of the project is that Kenya does not have any oil reserves. Kenya’s Energy and Petroleum Minister Opiyo Wandayi has said that oil may be imported from other countries. The refinery will have a 1,000 megawatt power plant that will provide electricity to the facility and the projected industrial parks.
According to Dangote, the project will provide employment for 60,000 people at its peak. Construction of the oil refinery is set to commence on 1 November, with completion expected in 2030.
