Ruto: Lamu refinery project to attract Ksh908B foreign direct investment

Kenya has agreed with Aliko Dangote to invest in a pipeline linking Turkana to Lamu, with oil extraction expected to begin by December.

Christine Muchira
4 Min Read
Highlights
  • Government has secured 9,000 acres in Lamu and plans to acquire an additional 3,000 acres for the project.
  • Special Economic Zone: A 5,000-acre SEZ is planned alongside the refinery project.
  • Ruto estimates the planned facility could represent 12% of Kenya’s GDP.
  • FDI: The investment is expected to help raise foreign direct investment to $6B–$7B (about KSh778B–KSh908B) next year.

Kenya has agreed with Aliko Dangote to invest in a pipeline linking Lamu to Turkana, enabling the country to transport its crude oil to Lamu, President William Ruto has said.

Speaking in a joint interview in Mombasa, President Ruto noted that Kenya will begin extracting Turkana oil by December, with the proposed pipeline enabling the country to transport crude to Lamu regardless of the initial production volumes.

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“We have agreed with Dangote that we will invest in a pipeline from Turkana to Lamu so that, however small the quantity, we can transport our crude oil to Lamu,” Ruto said.

The Head of State noted that the facility is going to be constructed on government land, with the government having secured 9,000 acres in Lamu and plans to acquire an additional 3,000 acres.

He added that the government will compensate any citizens affected if additional land is required for the project.

Similarly, he disclosed that there are plans to establish a Special Economic Zone, which will span approximately 5,000 acres.

“We plan to establish a Special Economic Zone, which will span approximately 5,000 acres,” he said.

Ruto noted that the scale of the planned investment significant compared with Kenya’s economy, estimating that the facility could represent about 12 pc of the country’s GDP.

He said the investment is also expected to help raise foreign direct investment (FDI) to between $6 billion and $7 billion (Ksh778B Ksh908B) next year.

Locally processed minerals

Ruto assured that government has agreed that no minerals will leave the country unprocessed, with the rights of Kenyans remaining the priority for investors partnering in the mining sector.

He said the government would continue to pursue local value addition to ensure communities and the wider economy benefit from the country’s mineral resources.

Title Deeds

The President said his administration was committed to resolving the squatter issue that has affected the residents of coast region for decades.

President William Ruto

President Ruto says he will return to the Coast before December to issue more title deeds, pledging to significantly address the squatter issue in the region before 2027.

“I will return here before December to issue more title deeds. Regarding the squatter issue in this coastal region, I believe we are fully committed to resolving the situation for everyone involved. So, let us say that before 2027, we will have resolved this matter; the squatter issue will have been significantly and substantially addressed,” President Ruto said.

Foreign employment opportunities

On youth employment, the President highlighted that more than 300,000 young Kenyans are working through online platforms, ICT hubs, Jitume labs and Business Process Outsourcing centres.

Similarly, he noted that 680,000 young Kenyans have secured jobs abroad over the past three to four years, urging more youth to use the National Employment Authority to access opportunities overseas.

 

Further Ruto stressed that Kenya must shift towards a service-based economy to unlock more jobs and achieve double digit economic growth, as opportunities in agriculture and value addition reach saturation.

At the same time Ruto noted that his administration has established an Anti-Narcotics Unit at the Directorate of Criminal Investigations (DCI) and provided them with sufficient vehicles to significantly boost their capacity to combat drug trafficking.

“We have established an Anti-Narcotics Unit at the DCI and provided them with sufficient vehicles to significantly boost their capacity to seal all the loopholes used to bring narcotics into the country,” he said.

 

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Christine Muchira is a journalist and storyteller with a passion for data-driven reporting and impactful human-interest narratives. I hold a postgraduate degree in International Studies and an undergraduate degree in Journalism and Media Studies both from the University of Nairobi, bringing a strong global perspective to her work while remaining deeply rooted in local community stories.