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The government has stepped up efforts to fast-track the establishment of the proposed Sh2.2 trillion East Africa oil refinery, with Deputy President Kithure Kindiki saying Kenya is working closely with East African Community (EAC) partners to build consensus on the project’s location.
Speaking after a high-level meeting at his office in Nairobi Tuesday, Kindiki said the government was committed to creating the legal, regulatory and administrative framework required to pave the way for the multi-trillion-shilling investment proposed by Nigerian businessman Aliko Dangote.
”Kenya is keen and is engaging regional partners for consensus on that facility being hosted in this region. It will create jobs and cushion our economy and the region from economic shocks caused by sharp rises in oil prices, such as those recently witnessed following the closure of the Strait of Hormuz,” Kindiki said.
The DP chaired a meeting bringing together key ministries, departments and agencies to review progress on preparations for the refinery, which is expected to rank among the largest in the world once completed.
The meeting was attended by Cabinet Secretaries John Mbadi (Treasury), Davis Chirchir (Roads), Opiyo Wandayi (Energy), Alice Wahome (Lands), Principal Secretaries and other senior government officials.
Kindiki said Lamu has emerged as the leading potential site for the refinery, although feasibility studies are underway to determine whether it is suitable for the project.
”We are hoping that the feasibility work will be completed quickly and that all stakeholders will buy into the project so that we can move forward. It will create jobs, establish a petrochemical hub for the region, cushion our economies from oil price shocks and support our industrialisation agenda,” he said.
President William Ruto has tasked the Deputy President with coordinating the government’s engagement with investors and other stakeholders ahead of the project’s implementation.
Kindiki said ministries and government agencies had already been assigned specific responsibilities and urged them to expedite their work as the feasibility studies continue.
”This is work in progress and all Ministries, Departments and Agencies are fully aware of their responsibilities. As the feasibility process continues, we will continue providing updates on the progress made,” he said.
He also called for patience from stakeholders, saying the government would continue holding consultations to ensure transparency and address concerns before construction begins.
According to the Deputy President, the refinery is a regional undertaking that requires careful coordination because it involves multiple East African countries as well as international investors.
”This is not entirely a Kenyan project. It is an international project involving regional partners and foreign investors. It is a sensitive and delicate undertaking, but one that is critical for Kenya and the wider region,” Kindiki said.
