Lamu beat seven other shortlisted sites across Kenya and East Africa when it emerged as the preferred location for the proposed oil refinery to be built by Nigerian tycoon Aliko Dangote, according to latest disclosures.
Government officials describe the decision as a major vote of confidence in the county's strategic position and infrastructure.
The revelation was made on Wednesday during the Kenya National Chamber of Commerce and Industry (KNCCI) Lamu Business Networking Forum and Exhibition, where Principal Secretary for Investment Promotion Abubakar Hassan said the county outperformed rival locations including Mombasa, Malindi in Kilifi County and Tanga in Tanzania.
Mr Hassan said Lamu's strategic Indian Ocean deep-water port, superior maritime access and geographical position made it the strongest candidate for the mega investment.
According to the PS, the region offers an unhindered trade route for supplying refined petroleum products to Kenya, Uganda, South Sudan and the Democratic Republic of the Congo, giving it a logistical advantage over competing coastal sites in Kenya and Tanzania. He added that the Dangote Group prioritised the county because of its alignment with Kenya's long-term industrialisation ambitions.
"The county already hosts Lamu Port, a facility offering the deepest harbour which is ideal for massive cargo and oil vessels. Its direct connectivity to the Lamu-Port-South Sudan-Ethiopia Transport (Lapsset) Corridor blueprint is also a key factor," said Mr Hassan.
Investment Promotion Principal Secretary Abubakar Hassan Abubakar in Nairobi on November 24, 2025.
Photo credit: File | Nation Media Group
He said another factor behind Lamu's selection was the availability of vast tracts of land, much of it already gazetted within the Lapsset Special Economic Zone (SEZ) at the mainland. Mr Hassan also cited the availability of water, explaining that the investor plans to pump water from River Tana in neighbouring Tana River County.
"We have a lot of water. About 70 kilometres from Lamu, we have River Tana where Dangote will be channeling water to the project site. Once that's done, our Lamu villages will definitely be connected to water supply, hence ending the perennial shortage of the commodity to our people," said Mr Hassan.
He urged residents to embrace the project, saying it would help slash Kenya's annual imports bill. The latest official figures show that Kenya's imports bill reached about Sh2.8 trillion in 2025, up from Sh2.7 trillion in 2024. The increase was driven largely by higher imports of industrial raw materials, machinery and petroleum products.
Responding to concerns raised by local residents, Mr Hassan clarified that the project is still at the feasibility stage, with engineering assessments and soil testing currently underway.
"Those people you're seeing on the ground at this very initial, early stage are undertaking feasibility studies to assess whether the site is viable. They want to know what exactly the technical requirements are, among others. Once all this is accomplished, then there'll be a series of engagement forums that will include both leadership and public participation. There's no cause for worry," said Mr Hassan.
Founder and Chief Executive of Dangote Group, Mr Aliko Dangote.
Photo credit: Reuters
While welcoming the investment, local leaders called for greater involvement in the planning process. Lamu County Assembly Majority Leader and Kiunga MCA Mohamed Bwana accused the national government of sidelining local leaders.
"We feel like we, the MCAs at the Lamu County Assembly, are being sidelined. Let President William Ruto know that we fully support this mega investment in our county but we need to be brought on board every step of the way. We're the hosts of this crucial venture," said Mr Bwana.
Mkomani Ward MCA Shekhuna Abbas and nominated MCA Ahmed Omar Medo said local youth should be the biggest beneficiaries once the refinery becomes operational.
"We're told the Dangote Oil Refinery Project will create 60,000 jobs. We want at least 70 percent of those jobs to be directed to the local youth here in Lamu," said Mr Abbas.
KNCCI President Dr Erick Rutto described the proposed refinery as one of the biggest foreign investments Kenya has attracted in recent years. "People should embrace this project. Let's prepare ourselves for this mega investment that will open up this region for diverse business opportunities," said Dr Rutto.
Community organisations welcomed the project but insisted that it must be implemented transparently and benefit local residents.
In a statement, the Shungwaya Welfare Association, a community-based civil society organisation championing indigenous Bajuni land rights, historical land justice and regional cultural heritage in Lamu County, commended the plan but called on implementing agencies to ensure meaningful public participation.
"All land acquisition processes must also comply with the Constitution and Kenyan law. Where land is required, compensation should be fair, prompt, transparent and based on independent valuation. Historical land injustices affecting communities in Lamu should also receive urgent attention," stated the organisation's chairperson Mohamed Mbwana.
A view of the newly commissioned Dangote oil refinery is pictured in Ibeju-Lekki, Lagos, Nigeria on May 22, 2023.
Photo credit: Reuters
Lamu Marine Forum Executive Director and former Save Lamu chairman Mohamed Athman urged the government to safeguard the county's fragile ecosystems, including mangrove forests, coral reefs, marine biodiversity, fishing grounds, forests and wildlife habitats.
On her part, Lamu Women Alliance Executive Director Raya Famau said the government and investors should protect fishing grounds, improve fish landing facilities and provide adequate support and compensation where livelihoods are affected by the project.
The organising secretary of the Council of Imams and Preachers of Kenya (CIPK) Lamu branch, Mohamed Abdulkadir, said the refinery should accelerate investment in roads, ports, electricity, clean water, hospitals, schools, housing, internet connectivity and other corporate social responsibility initiatives to ensure the entire county benefits.
Community representatives also proposed the establishment of a transparent Community Development Fund to support education, healthcare, youth empowerment, women, persons with disabilities, entrepreneurship and poverty reduction initiatives across Lamu County.
Nigeria's Dangote Group has proposed a 700,000-barrel-per-day oil refinery in Lamu. The project will be financed through internal cash flow, bonds and an initial public offering.
The refinery is expected to take about three years to build and will supply refined petroleum products to Kenya and neighbouring countries, reducing East Africa's dependence on imported fuels.
