Ruto touts Ksh.2B Monthly Wage Bill from Lamu refinery project

Speaking during the groundbreaking ceremony of the refinery project on Wednesday, September 30, President Ruto said the government would acquire a stake in the investment by contributing assets, including land, while ensuring that local communities benefit from the development.

President William Ruto has said the construction of the Ksh.2 trillion Dangote East Africa Refinery in Lamu County is expected to inject more than Ksh.2 billion into the economy every month through workers' wages and create approximately 60,000 direct and indirect jobs.

Speaking during the project's groundbreaking ceremony in Mokowe, Lamu County, on Wednesday, September 30, Ruto said the projected earnings would be generated during the four-year construction period, with local businesses also expected to benefit from increased economic activity.

"Katika kipindi cha miaka minne ya ujenzi, mradi huu unatarajiwa kuingiza zaidi ya shilingi bilioni 2 kila mwezi katika mishahara ya wafanyakazi, na kuunda takribani nafasi 60,000 za ajira," Ruto said.

The President said the wages would circulate through the local economy, benefiting shops, hotels, restaurants, transport operators, landlords and other businesses in Lamu and beyond.

The Ksh.2 trillion refinery, spearheaded by Nigerian billionaire Aliko Dangote, is designed to process up to 700,000 barrels of crude oil daily, positioning Kenya as a potential petroleum refining hub serving East Africa and international markets.

The project also envisages electricity generation capacity of up to 1,000 megawatts, part of which could eventually serve consumers beyond the refinery.

"This is bigger than a refinery. It is an investment in energy security, industrialisation, and regional integration," Ruto said.

The Head of State said the government would acquire a stake in the refinery through the contribution of assets, including land, while the private sector would provide capital, technical expertise and commercial management.

"The government of Kenya is going to have a stake in the refinery. We will deploy our assets including land. We don't want anything for free," he stated.

Ruto further disclosed that Kenya spent Ksh.530 billion importing petroleum products last year, arguing that developing local refining capacity would help retain more value within the economy.

He, however, acknowledged that establishing a refinery would not immediately eliminate the country's petroleum import bill, as crude oil would still have to be purchased and refined competitively.

The President also challenged Dangote to deliver the project within the proposed 40-month timeline, warning that Kenyans would closely monitor the deadline.

"You said you will be back here in 40 months to open this refinery. Kenyans are very good in keeping data. I want to warn you. They normally take me to task every time I give them a time frame," he said.

"The only way we get things done is when we give a time frame."

On employment, Ruto directed technical and vocational training institutions and universities to prepare young Kenyans for opportunities expected to arise from the refinery's construction and operation.

He said the project would require welders, engineers, technicians, managers and other skilled workers, while local businesses would have opportunities to supply construction materials, transport, accommodation, food and logistics services.

Ruto urged residents of Lamu and neighbouring coastal counties to position themselves to benefit from the investment, insisting that local communities should not be left out.

The President also announced plans to develop a new town on the Lamu mainland, expand affordable housing and pursue a major water supply project from the Tana River to meet anticipated demand arising from industrial and population growth.

He said the refinery would complement the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor by generating commercial activity around the port and associated transport infrastructure.

However, the project has faced concerns over land ownership and its potential environmental and social impact, with some residents challenging the use of land earmarked for the development.

The Environment and Land Court in Malindi has ordered the prevailing status quo maintained on disputed land pending further proceedings scheduled for October 14, 2026.

Addressing residents' concerns, Ruto pledged that land matters would be handled lawfully and fairly, with environmental safeguards enforced throughout construction and operation.

"Your interests will be taken care of. Your rights will be protected. Your voice will be heard, from today until the day this refinery runs, and beyond," he said.

He further directed the national government, Lamu County Government and the developer to establish a standing communication channel through which residents, businesses and community organisations could raise concerns.

Ruto maintained that the project's success would ultimately depend on the economic opportunities it creates and the extent to which local communities benefit.

"This refinery's scale will be measured in barrels and dollars. Its success must be measured in skills gained, enterprises built, livelihoods protected and public trust earned," he said.