This is even as supporters say the project could transform
Kenya into a major fuel hub for East Africa.
The proposed refinery, expected to cost between Sh2.2
trillion and Sh2.6 trillion, would be built in Lamu and process about 700,000
barrels of crude oil a day, making it the largest refinery in East Africa and
one of the biggest in Africa.
Construction is expected to take about three years once all
approvals are secured.
However, climate and environmental campaigners have warned
that the project could threaten the fragile coastal ecosystem and the heritage
status of Lamu Old Town.
In a statement, environmental lobby Power Shift Africa
described the project as "an extraordinary act of environmental
recklessness and economic short-sightedness".
"It would place one of Africa's largest fossil fuel
developments in one of the continent's most ecologically sensitive and
culturally significant coastal regions," its director Mohamed Adow said.
He argued the world was moving towards electric transport
and renewable energy, warning the refinery risked becoming a stranded asset
before recovering its investment costs.
Dangote Industries says the refinery would supply Kenya and
neighbouring countries with petrol, diesel and jet fuel, reducing the region's
heavy dependence on imported fuel products.
Kenya currently imports nearly all its refined petroleum
products following the closure of the former Kenya Petroleum Refineries plant
in Mombasa.
The project is expected to benefit from Lamu's deep-water
port and its location along the Lamu Port-South Sudan-Ethiopia Transport
(LAPSSET) Corridor, which was designed to turn northern Kenya into a regional
trade and transport gateway.
However, Adow said Lamu's mangrove forests, coral reefs and
fishing grounds support thousands of livelihoods and should not be treated as
empty coastlines waiting for industrialisation.
"The refinery's supporters will argue that it is about
development. But development for whom? Nearly 600 million Africans still lack
access to electricity. Their greatest challenge is not the availability of
refined petroleum products but the absence of affordable, reliable power,"
he said.
The government says the project represents a different kind
of opportunity.
It is expected to create thousands of jobs during
construction and operation, boost shipping activity at Lamu Port, and attract
related industries such as petrochemicals, storage facilities and transport
services.
The refinery would also strengthen energy security in East
Africa by reducing dependence on fuel imported from Asia and the Middle East,
where supplies can be disrupted by conflicts or shipping delays.
Recent tensions in the Middle East have highlighted the
risks of relying entirely on imported refined products.
President William Ruto's administration has already signalled
strong support for the project, with Deputy President Kithure Kindiki appointed
to lead a government team working with investors and agencies ahead of
implementation.
Dangote, Africa's richest businessman, successfully
completed a similar refinery in Lagos, Nigeria, which began operating in 2024
and has since become one of the world's largest refining facilities.
The Kenyan project would be his biggest investment outside
Nigeria.
Environmental activists previously led a successful campaign
against the proposed Sh200 billion Lamu coal power plant at Kwasasi.
The courts eventually cancelled the project's environmental
licence after finding flaws in the approval process and inadequate public
participation.
The campaign, led by groups including Save Lamu, became one
of Africa's best-known environmental victories and demonstrated the growing
influence of local communities in major infrastructure decisions.
INSTANT ANALYSIS
Plans to build a Sh2.2–Sh2.6 trillion oil refinery in Lamu
by Nigerian billionaire Aliko Dangote have sparked a clash between economic
ambitions and environmental concerns. Supporters say the refinery would create
jobs, strengthen East Africa's energy security and position Kenya as a regional
fuel hub. Environmental groups warn it threatens Lamu's fragile ecosystem and
cultural heritage while risking becoming a stranded asset as the world shifts
to cleaner energy. The government backs the project, citing its strategic
economic benefits.
