$17 Billion Oil Refinery Breaks Ground in Kenya's Lamu County

Kenya is set to break ground on a massive $17 billion oil refinery in Lamu County, marking a significant milestone for East Africa's energy security. The project, backed by Dangote Industries and the Africa Finance Corporation, will have the capacity to process up to 700,000 barrels of crude oil per day.

The refinery is expected to serve markets across East and Central Africa, including Kenya, Uganda, Tanzania, Rwanda, South Sudan, and the Democratic Republic of Congo. The project's financing plan includes raising approximately 70% of the cost through debt, with shareholders providing the remaining 30%.

Kenya has been offered a 10% stake in the project, valued at around $500 million. Ethiopia and Rwanda have also expressed interest in taking a share. The refinery is expected to create over 60,000 jobs, with Deputy President Kithure Kindiki estimating that it will reduce pressure on Kenya's foreign exchange by reducing oil imports.

The project faces an obstacle, however, as Kenya currently does not produce crude oil at commercial scale. Government advisers estimate that regional producers could supply more than 600,000 barrels per day once production begins in the region.