African leaders herald $16B Dangote oil refinery in Kenya

An oil refinery on Kenya's coast is expected to be completed in 40 months, and will process an estimated 700,000 barrels of oil per day. Africa's richest man, Aliko Dangote, will lead the project.

African leaders on Wednesday broke ground on a new $16 billion (€14 billion) oil refinery off Kenya's coast.

The project is expected to be completed in 40 months, and will process an estimated 700,000 barrels of oil per day. The refinery will be constructed at the coastal town of Lamu.

Kenya's President William Ruto, Ugandan President Yoweri Museveni, and Ethiopian Prime Minister Abiy Ahmed were among the leaders who attended an event to celebrate the project, the largest of its kind in East and Central Africa. 

The refinery "will strengthen regional energy security, reduce reliance on imports and bolster our foreign exchange," Ruto said on social media.

"But this is more than a refinery. It is an integrated industrial complex featuring a 1,000MW power plant, plastic factory and the manufacturing of fertilizers and chemicals."

Africa's richest man, Nigerian industrialist Aliko Dangote, will oversee the project.

Dangote: Project will reduce refined fuel imports, foster self-sufficiency

Dangote said the refinery will make East Africa more "self-sufficient" by reducing imports of refined fuel.

"For too long, our continent has actually been rich in resources but poor in value creation and addition. We have exported crude oil and imported refined products," Dangote said in his speech.

"Such practice only leads to us exporting our jobs and opportunities that should remain on the continent and lead us into importing poverty into our nations. Africa cannot build lasting prospertiy by exporting what it has and importing what it needs," he continued.

Lamu project faces environmental concerns, legal challenge

The project, however, has faced resistance from environmental campaigners who fear it could harm Lamu Old Town, a UNESCO World Heritage Site which also hosts a fragile and unique marine ecosystem.

The Lamu marine environment is also home to animals such as dugongs, whales and various sea turtle species.

Lamu residents have brought a land rights legal case against the refinery, saying the site where it will be built is their ancestral heritage.

Kenya's High Court on Monday ruled that legal proceedings will continue, but the groundbreaking ceremony can take place.

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