HomeKenyaEconomyDangote breaks ground on a Sh2.2 trillion oil refinery in Lamu. What...

Dangote breaks ground on a Sh2.2 trillion oil refinery in Lamu. What it means for your pocket

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Work has officially started on a large oil refinery at Mokowe in Lamu County, to be built by the Nigerian billionaire Aliko Dangote.

President William Ruto and Dangote broke ground on Wednesday, 30 September. They were joined by Uganda’s President Yoweri Museveni, Ethiopia’s Prime Minister Abiy Ahmed, Benin’s President Romuald Wadagni and former Nigerian President Olusegun Obasanjo.

KNN graphic: 700,000, barrels a day: the oil refinery Dangote plans to build in Lamu
Graphic: Kibra News Network

The project in numbers

  • Cost: about Sh2.2 trillion, as widely reported.
  • Size: 700,000 barrels of crude oil a day, to make petrol, diesel and jet fuel.
  • Power: a 1,000MW power plant, with up to 500MW that could be sold to the Kenyan government. There are also plans for fertiliser, plastics and chemicals plants.
  • Jobs: up to 60,000 direct and indirect jobs are expected. Dangote also promised a training school in Lamu for 1,000 local people.
  • Time: Dangote has spoken of about 40 months to build it. Other reports say three to four years.

Crude oil is expected to come from Uganda, South Sudan and other producers through a planned pipeline along the LAPSSET corridor. The fuel is meant for markets across the region, including Uganda, Tanzania, Ethiopia, South Sudan, Rwanda, Burundi and DR Congo.

President Ruto said Kenya spent Sh530 billion importing petroleum products last year, and that the refinery would not make that bill go away overnight.

Questions still open

Local residents have a land case in court, and a court has ordered parts of the site preserved while it is heard. Ruto said land issues would be handled lawfully and fairly. Museveni said he supports the project, but that Uganda will not invest in it for now and is going ahead with its own refinery.

What it means for you

  • Nothing changes at the pump for now. EPRA’s Nairobi prices until 14 October are Sh214.03 a litre for petrol, Sh217.86 for diesel and Sh191.38 for kerosene.
  • Any effect on fuel prices is years away, once the refinery is running.
  • Most construction jobs will be in Lamu, and local people are to get priority. Be careful of adverts or WhatsApp messages offering “Dangote jobs” for a fee. Real employers do not charge you to apply.

Sources: Capital FM, Daily Monitor, Citizen Digital (the plant), Citizen Digital (jobs and land), Capital FM (training school), The Kenya Times (Ruto’s speech), HapaKenya (EPRA prices).

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KNN Newsroom is the staff byline for stories written, rewritten and edited at the Kibra News Network desk. Where a story credits an outside outlet, the original source is linked at the foot of the piece.
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