President William Ruto has directed Deputy President Kithure Kindiki to chair a government committee that will coordinate with private investors and employers on the implementation of the Ksh2.2 trillion East African oil refinery firm set to be constructed in Lamu.

🇰🇪 Breaking It Down

Speaking on Wednesday, July 8, at State House during the assent to the Sovereign Wealth Fund Bill, the president said the government had already put in place implementation structures for the multi-trillion-shilling investment and that preparations for the project's launch were at an advanced stage.

According to the Head of State, there is already a date for the groundbreaking of the firm. However, he did not reveal the exact date for the groundbreaking ceremony.

"I have asked the Deputy President to chair the government committee that is going to work with private investors and employers for what will be one of the largest investments in our country, the investment in the East African oil refinery," Ruto stated.

📌 What You Need to Know

"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.

Ruto had earlier announced that the construction of the firm would begin in late 2026. Still, the latest announcement reveals that a date has already been set.

According to the 2026/27 budget, the government designated seed capital of Ksh 21.5 billion towards the project, with other private firms coming in under the public-private partnership (PPP) framework.

The latest directives followed reports that Aliko Dangote, the Nigerian businessman behind the refinery, had already settled on Lamu Port as the final site for the multi-trillion project, ending months of speculation over whether the project would be built in Tanzania or Kenya.

According to Dangote Industries, construction is expected to take between 30 months and three years before the refinery begins processing crude oil for the Kenyan market and neighbouring countries.

The company also revealed that the project will be financed through a combination of internally generated cash, bond issuances and proceeds from a planned initial public offering (IPO), reducing reliance on external borrowing.

📰 Source: Kenyans.co.ke