Kenya is preparing for the groundbreaking of a major oil refinery project in Lamu, with the government presenting the investment as an important step in the country’s industrial and energy development.
The proposed refinery is linked to Nigerian businessman Aliko Dangote’s group and is expected to become one of the biggest industrial projects in the region.
According to the project plans, Kenya has been offered a 10 per cent stake estimated at about KSh64.7 billion. Rwanda and Ethiopia have also been offered an opportunity to participate in the wider regional shareholding arrangement.
However, questions have emerged over what the people of Lamu will directly gain from hosting the multitrillion-shilling project.
The refinery will be built in Lamu, meaning local residents will live alongside a major industrial facility expected to attract workers, businesses and other investments.
Local leaders and community groups have called for greater involvement in decisions surrounding the project. They have also pushed for clear agreements covering employment opportunities, local businesses and development projects.
The government has highlighted the potential economic benefits of the refinery, including job creation, improved fuel security and the development of Lamu as an energy and industrial hub.
The project is expected to have a processing capacity of about 700,000 barrels of crude oil per day. The government has also said the investment could create tens of thousands of employment opportunities during construction and operation.
Beyond employment, residents and local businesses are also expected to seek opportunities to supply goods and services to the project.
The debate therefore goes beyond whether the refinery will be completed. It also raises the question of whether Lamu residents will receive lasting economic benefits from an investment taking place on their land.
As preparations for the project continue, calls for transparency, public participation and a clear framework for community benefits are likely to remain part of the discussion.