For centuries, Lamu’s fortunes have been tied to the sea, trade, Swahili culture and tourism. Now, the county is preparing for a major economic transformation.
The planned Sh2 trillion East African Refinery , whose groundbreaking was done on Wednesday alongside the expansion of Lamu Port and other investments, is expected to accelerate the county’s emergence as an industrial and logistics centre.
But as Lamu embraces industrialisation, a key question is whether it can attract large-scale investment without undermining the tourism, cultural heritage and marine environment that have made it an international destination.
President William Ruto (right) and President of the Dangote Group Aliko Dangote during the groundbreaking ceremony for the Dangote East African Refinery in Lamu County, Kenya.
Photo credit: PCS
Lamu Old Town is a UNESCO World Heritage Site and one of the oldest and best-preserved Swahili settlements in East Africa. Continuously inhabited for more than 700 years, it retains its traditional architecture, urban structure and cultural practices.
The challenge, therefore, is not necessarily choosing between tourism and industry, but determining whether the two can develop alongside each other without one diminishing the other.
Tourism Principal Secretary Julius Bitok believes Lamu could accommodate major industrial investments while retaining its position as a leading coastal tourism and cultural heritage destination.
Prof Bitok said the proposed investments could diversify Lamu’s tourism economy by expanding it beyond leisure tourism to include business travel, conferences and other corporate activities.
He said the government was putting in place safeguards to balance industrial development with conservation of the county’s ecological, cultural and heritage assets.
Tourism PS Julius Bitok at Nakuru
Photo credit: Boniface Mwangi | Nation Media Group
“Lamu Island is one of the oldest coastal, marine and cultural and heritage destinations that has stood the test of time like its peers of Dubai, Abu Dhabi, Zanzibar and Mombasa,” Prof Bitok said.
Speaking to Daily Nation , the PS said Kenya’s tourism sector was anchored on sustainability and that new investments could create demand for business-oriented accommodation and conference facilities.
Prof Bitok said the government would draw lessons from commercial and industrial hubs such as Dubai and Abu Dhabi, where tourism and industry have developed alongside each other.
He said Lamu’s master plan and zoning framework would help protect areas with tourism, cultural and ecological value as the county develops.
“The Lamu master plan balances urban planning and zoning to ring-fence its long-term beach culture appeal in the mould of Madrid, Barcelona and Dubai, which are industrial hubs as well as tourism hubs,” he said.
Prof Bitok said the national and county governments would enforce tourism destination planning, zoning, conservation and ecological protection standards and work with agencies including the National Environment Management Authority (NEMA) and the Tourism Regulatory Authority.
Lamu’s tourism and ecological assets stretch across Manda, Ras Kitau, Lamu Island, Mokowe, Mpeketoni and Witu, he said.
Prof Bitok noted that Lamu has several five-star and other luxury hotels whose capacity is not being fully utilised because of low occupancy rates.
The planned investments, he said, could create a new market for the hospitality sector, with major players already expressing interest in establishing hotels and leisure facilities in the county.
“Lamu stands to benefit from the coming investments through jobs, business opportunities, utilities and improved lifestyle to complement its tourism appeal,” he said.
He said increased business travel could also help address tourism seasonality because corporate travellers were less tied to traditional holiday periods.
“Seasonality and low hotel occupancy rates will also be eliminated by these developments since the new business travellers are not tied to a season,” he said.
Tourism expert Mohammed Hersi also believes industrialisation and tourism can coexist if activities are properly separated.
“When you actually look at the actual tourism that happens in Lamu, it is on the island side, and then you can go further to probably Manda, which is way off. So, the area can be demarcated, and the county can balance between industrial and tourism hubs,” said Mr Hersi, director of Pollman’s Tours and Safaris.
Tourism expert Mr Mohammed Hersi.
Photo credit: File | Nation Media Group
The former Kenya Tourism Federation chairman said Lamu’s geographical size provides room for distinct industrial and tourism zones.
“You can industrialise and have a thriving port city just like Mombasa and nothing stops us from doing that. The beautiful thing about Lamu is that it is an island and there is no development on that side. Lamu is also very big, so all these can be balanced,” he said.
For the hospitality sector, the proposed refinery and other major investments could open a market that has largely been missing from Lamu business travellers.
Engineers, consultants, contractors, investors, conference delegates, government officials and other professionals involved in major projects would require accommodation, restaurants, meeting facilities, transport and other services.
“That is MICE tourism business. You get corporate business coming. In future, hotels will be built around the Lamu Port and Mokowe. Dar es Salaam and Mombasa are all port cities, so Lamu can get a textbook from its existing cities,” Mr Hersi said.
However, he said existing hotels were largely designed around leisure tourism and would have to adapt to the changing market.
“Lamu hotels are currently prepared for leisure tourists only. They are not prepared for business clientele, let alone corporate clients. So new hotels need to come up,” he said.
He said larger hotels and conference facilities could enable Lamu to tap into meetings, incentives, conferences and exhibitions (MICE) tourism.
Kenya Association of Hotelkeepers and Caterers Coast Region executive officer and Mombasa Tourism Council chairman, Dr Sam Ikwaye, said industrialisation could create an entirely new hospitality segment in Lamu.
Major investments could bring workers, consultants, investors, contractors, government officials and business travellers requiring accommodation, food and beverage services, transport, meetings and other hospitality services.
“This can broaden Lamu’s visitor economy beyond the traditional leisure market,” Dr Ikwaye said.
He said industrial and corporate travel could also provide a more consistent source of business throughout the year.
“Leisure tourism naturally experiences peaks and low seasons, whereas industrial and corporate travel tends to be more consistent throughout the year. Hotels could therefore achieve better year-round occupancy and employment,” he said.
But the potential economic gains come with concerns about the impact of rapid development on Lamu’s tourism product.
“Our greatest concern would be protecting the integrity of the destination. Lamu’s beaches, mangroves, marine ecosystem, traditional settlements and cultural heritage are not simply environmental or cultural assets; they are economic assets on which tourism depends,” he said.
He said pollution, inappropriate development, excessive heavy traffic, poor waste management and degradation of the coastline could affect the county’s tourism appeal.
“Once a destination loses its environmental quality or cultural authenticity, rebuilding that tourism image can be extremely difficult and expensive,” he said.
In a 2013 decision, the UNESCO World Heritage Committee expressed concern about the potential impact of the LAPSSET corridor and the Lamu Port and Metropolis Development Project on Lamu Old Town’s Outstanding Universal Value and called for a comprehensive Heritage Impact Assessment.
Coast-based architect and regional chair of the Architectural Association of Kenya Dancan Odhiambo said the history of the county made careful planning particularly important.
“Lamu can realistically develop as an industrial hub while remaining a major tourism destination, but only if the two functions are deliberately planned to coexist rather than being allowed to compete for the same environmental, cultural and spatial resources,” he said.
The BSM Team ltd Managing Director said strong spatial planning and strict zoning would be required to concentrate heavy industries, petrochemical facilities and logistics yards in designated areas.
Adequate physical and environmental buffers should separate such developments from Lamu Old Town, beaches, mangroves, tourism areas and other environmentally sensitive landscapes, he said.
“Industrialisation should add another layer to Lamu’s economy without erasing the heritage, ecology and cultural identity upon which much of its existing value has been built,” he said.
“One could be a business and industrial hospitality economy around Lamu Port, Mokowe and other emerging commercial centres, while the other remains centred on heritage, culture and leisure tourism around Lamu Old Town, Shela and the wider archipelago,” he said.
An idyllic street in Lamu Old Town.
Photo credit: File | Nation Media Group
Under such a model, hotels near industrial areas could cater for business travellers while the islands continue serving visitors seeking Lamu’s traditional tourism experience.
The expert said major developments should undergo rigorous Environmental and Social Impact Assessments, Heritage Impact Assessments and cumulative-impact assessments, he said, given the potential for several projects to collectively alter the coastline, ecosystems and settlement patterns.
Dr Ikwaye said the government would need to invest ahead of the anticipated expansion in water, sewerage, waste management, energy, roads, telecommunications and emergency services.
“Lamu needs stronger road connectivity, improved air access, reliable electricity, adequate clean water, modern sewerage and waste-management systems and high-quality telecommunications,” he said.
Infrastructure planning, he added, should anticipate the county’s needs over the next 10 to 20 years rather than responding after problems emerge.
“Of particular importance is waste and wastewater management. If population, hotel capacity and industrial activity increase simultaneously without corresponding environmental infrastructure, the pressure on the destination could become unsustainable,” he said.
Dr Ikwaye also said local communities and tourism stakeholders should have a meaningful role in major development decisions, while local residents should benefit through employment, training, entrepreneurship and supply chains.
Mr Hersi similarly acknowledged concerns about pollution and the potential impact of industrial activity on Lamu’s beaches and marine environment.
He said modern technologies could help minimise pollution, but regulations governing sewage, industrial waste and other pollutants entering the Indian Ocean would have to be enforced.
“We should ensure no waste is dumped in our Indian Ocean, our land and air. But when you get an investor like Mr Dangote who means business, we expect them to tick all the right boxes,” he said.
He also called for improvements in water and electricity supply, saying the government should explore ways of using the River Tana and developing adequate water purification facilities to meet the county’s growing needs.
For hoteliers, the proposed refinery represents a potential expansion of Lamu’s customer base.
Lamu Deputy Governor Dr Mbarak Salim has described the project as a game changer for the region, saying it could open up employment opportunities for local youth.
“Historically, Lamu has been marginalised, but now it has gotten a huge project on the global map. Our youths will now get employment,” Dr Salim said.
President William Ruto has also described the proposed Sh2 trillion refinery as a major project that could create 60,000 jobs, attract investment and generate foreign exchange while reducing reliance on imported fuel.
PrideInn Hotels, Resorts and Camps Managing Director and founder Hasnain Noorani said the hospitality industry would need to prepare for the potential changes in demand.
“The two can coexist, but it will require very deliberate planning. Industrialisation and tourism do not necessarily have to compete with each other. What matters is where development takes place, how it is regulated and how effectively we protect the assets that make Lamu unique,” Mr Noorani said.
He said Lamu had enormous economic potential but also possessed an identity that could not easily be replicated, including its beaches, marine ecosystem, Swahili culture and heritage.
Industrial development, he said, needed to be properly zoned and planned so that Lamu could benefit from new investment without losing the character that has made it an internationally recognised destination.
Major investments on the scale of the proposed refinery could significantly change the county’s demand profile, Mr Noorani said.
“We could see increased movement of investors, engineers, consultants, contractors, government officials, logistics companies and other business travellers. All these people require accommodation, restaurants, meeting facilities, transport and other hospitality services,” he said.
Beyond traditional leisure tourism, he said Lamu could develop a stronger corporate and business travel segment, potentially helping hotels attract customers throughout the year.
During construction, contractors, technical teams, consultants and suppliers could generate demand, while an operational refinery and associated industries could sustain demand from executives, investors, service providers and other business travellers.
“There are also opportunities beyond accommodation. Hotels could provide conferencing, catering, long-stay accommodation, corporate events and other services. For the hospitality industry, the opportunity is therefore not simply about filling hotel rooms. It is about developing an entire business-tourism ecosystem around the economic activity being created,” he said.
But Mr Noorani said development would have to be accompanied by safeguards for Lamu’s environmental and cultural assets.
He said the county’s appeal was closely connected to its cultural heritage, architecture, coastline, marine environment and distinctive way of life.
Once damaged, some of these assets could be difficult or impossible to restore, he said.
He called for strong safeguards covering environmental protection, waste management, emissions, marine ecosystems, land-use planning and cultural heritage.
Kenya, he said, should not have to choose between development and conservation.
“The objective should be responsible development that allows both to thrive,” he said.
Luxurious hotels within Lamu's Shella Island.
Photo credit: Kalume Kazungu | Nation Media Group
Mr Noorani called for integrated planning involving tourism, industrial development, infrastructure, environmental conservation and community interests.
“There should be clear zoning separating heavy industrial activities from sensitive tourism, residential, heritage and ecological areas. Environmental and heritage impact assessments must also be rigorous, independent and continuously monitored rather than treated simply as approvals required at the beginning of a project,” he said.
He said local communities should participate meaningfully in the economic opportunities created by investment, including through employment, skills development, local procurement and support for local businesses.
Investors, he added, should be held to high environmental standards, particularly on waste management, water resources, emissions and protection of marine ecosystems.
The government should also continue investing in roads, airports, utilities, security, healthcare and connectivity, he said.
“These investments benefit industry, tourism and local communities simultaneously. If we get that balance right, Lamu can become an interesting example of how tourism, infrastructure and industrial development can support one another,” he said.
Asked whether PrideInn could tap into the emerging market, Mr Noorani said the company was continuously evaluating destinations and investment opportunities across Kenya and the wider region.
Lamu, he said, was a market the company would continue watching.
“If the developments being proposed translate into sustained growth in leisure and business travel, naturally there will be opportunities for hospitality investment,” he said.
“We therefore remain open to opportunities in Lamu. As the destination evolves, if we identify the right opportunity and the right model, it is certainly a market we would be interested in exploring,” he added.
For Lamu, the refinery could therefore represent more than a new industrial project.
It could alter the county’s economic structure by bringing energy, logistics, manufacturing and business activity alongside an economy built for centuries around tourism, culture and the sea.
Whether the two sectors develop in tandem will depend on planning, zoning, infrastructure, environmental safeguards and the protection of Lamu’s heritage.
The county’s challenge now is to manage that transition without allowing the industrial future to come at the expense of the tourism identity that has defined Lamu for generations.
