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Work starts on Dangote’s refinery in Lamu

The 700,000-barrel-a-day plant broke ground on 30 September and is meant to make materials for plastics and rubber as well as fuel. A land case is heard on 14 October.

Refinery towers and red-and-white chimneys against a clear skyIndustry
Photo: Christian Harb on Unsplash

700,000

barrels a day, the refinery’s planned capacity

President William Ruto, Uganda’s President Yoweri Museveni and Ethiopia’s Prime Minister Abiy Ahmed broke ground on the Dangote refinery in Lamu on 30 September. The State Department for Transport puts its planned capacity at 700,000 barrels a day. More than 110 pieces of equipment are already on site, with about 400 more due within 60 days.

The Standard reports the project at US$16 billion, with construction expected to take 40 months and about 60,000 jobs during the build. As well as fuel, the refinery is planned to make materials used in plastics and rubber.

What it could mean for industry

David Ndii, the President’s economic adviser, projects that the refinery and the petrochemical businesses around it could lift manufacturing from 7.1% of Kenya’s economy to as much as 12%.

A land case on 14 October

The Environment and Land Court in Malindi declined to stop the groundbreaking, but ordered that things stay as they are on a disputed parcel of land until a hearing on 14 October. The petitioners, 133 residents of the Hindi and Manda Magogoni area, say they have long lived on and farmed the land, and are asking for compensation and resettlement.

Why it matters

  • For plastics and rubber makers, raw materials made in Kenya would change what they pay. On the timetable given, that is more than three years away.
  • Nothing changes at the pump yet. Fuel prices are still set every month by EPRA.
  • The court hearing on 14 October is the next date to watch.

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