African Leaders Break Ground on $16B Kenya Oil Refinery Despite Land Protests

African heads of state, including Kenya's President William Ruto, held a ground-breaking ceremony on September 30, 2026, for a $16 billion oil refinery project in Lamu, on Kenya's northern coast. Nigerian billionaire Aliko Dangote is leading the initiative, which is expected to process 700,000 barrels of crude oil per day when completed in approximately 40 months (by 2030). The refinery will be East Africa's largest industrial project by capacity and Kenya's largest infrastructure project since independence.

The ceremony was attended by heads of state from Uganda, Ethiopia, Togo, and Benin, as well as Nigeria's former President Olusegun Obasanjo. Other East African countries—Rwanda, Burundi, South Sudan, and Tanzania—sent heads of delegation. Dangote framed the project as part of Africa's industrial self-sufficiency, stating "Africa must industrialize Africa" and emphasizing that the continent cannot continue "exporting what it has and importing what it needs." The refinery will source oil from neighboring countries including Uganda and South Sudan, and Dangote cited the region's consumption levels—exceeding 700,000 barrels per day—as justification for the facility's capacity.

The project has faced opposition from local residents demanding increased compensation for land use. Dangote dismissed these protests as "games played by local marketers and international players," stating the refinery would proceed as planned. A group of 133 Lamu residents has filed a case in Kenya's High Court seeking to halt construction, resulting in restrictions on excavation and construction on disputed land until a court hearing scheduled for October 14, 2026. The Save Lamu campaign group has raised concerns about environmental impact and requested findings from the environmental impact assessment.

Dangote offered regional governments a combined 30% stake in the refinery. The project will include a 1,000-megawatt power plant, which Dangote identified as addressing Africa's electricity constraints. He projected the refinery would create 60,000 jobs during peak construction. The initial site plan was Tanzania's coastal town of Tanga, but Dangote stated Lamu was selected for its deeper waters, solid ground capable of supporting heavy equipment, and deep-sea access. Kenya's Energy and Petroleum Minister Opiyo Wandayi clarified that refineries source crude oil from open markets and cited Singapore—an oil non-producer with substantial refining capacity—as a precedent.