Lamu Refinery's Crude Conundrum: Aliko Dangote's $16 Billion Project Stuck in Neutral

Aliko Dangote's ambitious Lamu refinery project in Kenya is facing a major hurdle: securing a steady supply of crude oil. The $16 billion facility, set to produce 700,000 barrels per day, will be one of the largest in East Africa and the second-largest on the continent.

The problem lies with the region's limited production capabilities. Kenya itself has no commercial oil production, while Uganda's barrels are already committed elsewhere through the East African Crude Oil Pipeline. South Sudan's exports face disruptions due to ongoing conflicts.

David Ndii, chief economic adviser to President William Ruto, estimates that the region could produce around 600,000 barrels per day, but this remains a distant prospect.