The government has intensified efforts to fast-track the establishment of the proposed Sh2.2 trillion East Africa oil refinery, with Deputy President Kithure Kindiki announcing that Kenya is actively engaging regional partners to build consensus on the location of what is expected to be one of the largest refinery projects in the world.
Speaking on Tuesday after chairing a high-level inter-ministerial meeting at Harambee House Annex in Nairobi, Kindiki said the government is keen to ensure the project, proposed by Nigerian billionaire industrialist Aliko Dangote, is established in the East African region to boost energy security, create jobs and accelerate industrialisation.
He said Kenya was working closely with East African Community (EAC) partner states to agree on the most suitable location for the refinery while undertaking the legal, regulatory and administrative preparations necessary for its implementation.
"Kenya is keen and is engaging regional partners for consensus on that facility being hosted in this region. It will create jobs, hence cushioning our economy and the region from economic shocks emanating from sharp rises in oil prices like we have witnessed recently because of the closure of the Strait of Hormuz," Kindiki said.
The Deputy President chaired a consultative meeting bringing together Cabinet Secretaries, Principal Secretaries and senior government officials to review progress on the project and coordinate the next phase of implementation.
Among those present were National Treasury Cabinet Secretary John Mbadi, Roads and Infrastructure Cabinet Secretary Davies Chirchir, Energy Cabinet Secretary Opiyo Wandayi, Lands Cabinet Secretary Alice Wahome, alongside Principal Secretaries and other senior government officials.
Kindiki disclosed that Lamu had emerged as the proposed location for the refinery, although feasibility studies are currently underway to determine whether the site meets the technical, environmental and logistical requirements for such a large-scale investment.
"We are hoping that the feasibility work will end quickly and all the stakeholders will buy in so that we can have this big project. It will create jobs, establish a petrochemical hub for this region and help us cushion our economies from oil price spikes as well as help our industrialisation agenda as a region," he said.
Deputy President Kithure Kindiki chairing a pre-project stakeholder meeting on the proposed Eastern Africa oil refinery at his Karen residence, Nairobi, on July 28, 2026 PHOTO/DPCS
The Deputy President revealed that President William Ruto has assigned him the responsibility of coordinating the government's engagement with investors, regional partners and other stakeholders ahead of the commencement of the project.
He said government agencies had already been assigned specific responsibilities to ensure the project progresses without unnecessary delays, urging ministries and departments involved to expedite their respective mandates.
"This is work in progress, and all Ministries, Departments and Agencies are seized of their responsibilities as the feasibility process goes on, and from time to time we will be reporting progress," he said.
Kindiki also appealed for patience from stakeholders, noting that consultations would continue throughout the planning process to ensure transparency and build consensus among all parties.
"This is not entirely a Kenyan project. It is an international project involving regional partners and foreign investors. It is a sensitive and delicate matter, but it is crucial for us and the region," he emphasised.
If approved, the refinery is expected to transform East Africa's energy landscape by reducing dependence on imported refined petroleum products, strengthening regional fuel security and positioning the region as a major petrochemical manufacturing hub.
The project is also expected to generate thousands of direct and indirect jobs, stimulate infrastructure development and support Kenya's broader industrialisation agenda while enhancing regional economic integration under the East African Community framework.