The deal
Nigerian billionaire Aliko Dangote and Kenya's President William Ruto are set to break ground on a $16bn oil refinery in Lamu this November. Once it’s up and running by 2030, this thing is expected to process 700,000 barrels of crude oil a day. It’s lowkey massive—the largest infrastructure project in Kenya since independence, easily topping the $5.1bn Standard Gauge Railway.
The tension
Real talk: not everyone is hyped. Residents in Lamu are protesting, demanding more cash for the land being used. Dangote, however, isn't sweating it. He told the BBC, “Have you ever seen people demonstrating against themselves in terms of development?” and claimed the company only took the land the government made available.
Then there’s the environmental side. Walid Ali, co-founder of the Save Lamu group, says the community has been ghosted by the company, noting, “There is no ownership of the project by the community.” Activists are demanding to see environmental impact assessments, worried that concerns are being overlooked like in previous projects.
Why Kenya?
Critics are side-eying the location since Kenya isn't an oil-producing country. But both Dangote and Kenya’s Energy and Petroleum Minister Opiyo Wandayi aren't pressed. They point to Singapore as a prime example of a country that doesn't drill its own oil but runs a massive refining hub anyway. The plan is to rely on the open global market for crude oil.
Why it matters
Dangote is betting big on industrialization. He’s looking to tackle the power grid across Africa, with plans for 10,000 megawatts of capacity by 2030. While some hope this new refinery will eventually lower fuel prices, the reality is that those costs are still tied to global market rates. Still, the project promises to create 60,000 jobs, which is a major W for the local economy—assuming the project actually gets built without further drama.
