The government has confirmed plans for the setting up of a Ksh12.9 billion palm oil processing plant in Lamu County, coming at a time when Kenya is eyeing a major refinery project by Nigerian billionaire Aliko Dangote in the coastal county.

🇰🇪 Breaking It Down

Principal Secretary for Investment Promotion Abubakar Hassan said discussions on the Ksh12.9 billion (USD100 million) palm oil investment were being finalised, with the facility planned for Witu Nyangoro Ranch.

The proposed plant is expected to create about 3,000 jobs, according to the PS, as the government seeks to expand local production and reduce Kenya’s reliance on imported palm oil.

The investment comes as Lamu emerges as a potential industrial hub, with Dangote also advancing plans to establish a major oil refinery in the county that is expected to serve Kenya and the wider East African region.

📌 What You Need to Know

“The second-largest import bill, after petroleum oil, is crude palm oil. Kenya imports $1 billion of palm oil,” the PS said on Monday, August 10, noting the scale of the market the government hopes to tap through local production.

The government is now seeking to reverse the trend by encouraging investment in palm oil production and processing, with Lamu identified as one of the areas that could support large-scale cultivation.

The proposed plant at Witu Nyangoro Ranch is expected to support the development of a local palm oil value chain, potentially creating opportunities for farmers, processors, transporters, and other businesses linked to the industry.

The investment would also add to a series of major projects being considered for Lamu as the government seeks to position the county as an important centre for energy, agriculture and manufacturing.

Meanwhile, this comes at a time when billionaire Dangote has said construction of his proposed Lamu refinery could begin by October 2026 , with the Nigerian businessman saying preparations for the project have reached an advanced stage.

The refinery is expected to process up to 700,000 barrels of crude oil per day and supply petroleum products to Kenya and other markets across East Africa once completed.

📰 Source: Kenyans.co.ke