The planned construction of a 700,000-barrels-per-day (bpd) Dangote oil refinery in Lamu is expected to unlock major investment opportunities for Garissa County, through increased trade, transport, logistics and industrial growth along the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor.
The multi-billion-dollar refinery, proposed by Nigerian industrialist Aliko Dangote, is poised to become one of East Africa’s largest industrial investments.
Beyond the coastal region, its economic impact is expected to extend to counties along the LAPSSET Corridor, positioning Garissa as a strategic gateway for commerce between the Kenyan coast, North Eastern Kenya and the wider Horn of Africa.
Improved transport links and higher cargo volumes are expected to drive demand for logistics services, fuel distribution, warehousing, construction materials and hospitality, creating new opportunities for businesses and investors in Garissa.
Mr. Siyad Jimale, Executive Director of Horizon Analysts and Researchers Network (HARN), said the refinery presents a rare opportunity for Garissa to leverage its strategic location and attract both public and private investment.
“The refinery is expected to stimulate demand for transport services, fuel storage facilities, warehousing, construction materials, hospitality and other support industries. This will create opportunities for local businesses while opening the county to new investors,” Mr. Jimale said.
He added that increased economic activity could generate employment for thousands of young people, strengthen small and medium-sized enterprises and accelerate investment in supporting infrastructure, including roads, energy and commercial facilities.
“Garissa’s strategic location along regional trade routes places it in a strong position to benefit from the anticipated increase in cargo movement and business activity associated with the refinery,” he said.
The refinery will be located in Lamu, off Kenya’s coast, and is expected to mirror the scale of Dangote’s flagship refinery in Nigeria. Edwin Devakumar, Vice President for Oil and Gas at Dangote Industries Limited, told AFP that construction is expected to take about 30 months.
The announcement is seen as a vital milestone for Kenya’s ambitions to become a regional energy and logistics hub.
The refinery is expected to complement investments under the LAPSSET Corridor, a flagship infrastructure programme designed to connect Kenya with South Sudan and Ethiopia through modern transport and trade networks.
Tanzania had also been under consideration as a potential host for the refinery. However, during a visit to Dar es Salaam last month, Dangote explained to President Samia Suluhu Hassan the commercial and technical factors that informed the decision to establish the refinery in Lamu. According to a statement from his office, he also invited Tanzania to participate in investment opportunities linked to the project.
The refinery represents more than an energy investment for the residents of Garissa and Lamu counties. It offers the prospect of accelerated industrialisation, expanded regional trade and stronger private sector participation, potentially reshaping the economic landscape of the region over the coming decades.
