A coastal county in Kenya, Lamu is on the verge of a major economic transformation as the Kenyan government confirms plans for a Ksh 12.9 billion (approximately $100 million) palm oil processing plant and moves closer to launching a multi-trillion shilling petroleum refinery.
- There is a new plan to build a $100 million palm oil processing plant and a multi-billion dollar petroleum refinery in Lamu county.
- Both projects are designed to boost local economies, create jobs, and position Lamu for long-term growth and regional influence.
- Local palm oil production is expected to save Kenya significant import costs and create around 3,000 new jobs.
- These projects will transform Lamu into a major agriculture and energy hub.
These two massive industrial projects are designed to turn the coastal region into a central hub for agriculture and energy.
By focusing on local production and large-scale manufacturing, the government aims to create thousands of jobs while significantly reducing the country’s dependence on expensive imports from overseas.
A project to boost local farming and job creation
The new palm oil processing plant will be located at the Witu Nyangoro Ranch in Lamu. Investment Promotion Principal Secretary Abubakar Hassan has stated that discussions for this $100 million project are currently being finalized.
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The primary reason for this investment is to help Kenya save money. Currently, palm oil is one of the most expensive items the country buys from abroad, second only to petroleum.
According to Kenyans.co.ke, Principal Secretary (PS) for the State Department for Investment Promotion within the Ministry of Investments, Abubakar Hassan highlighted the scale of this issue, stating, “The second-largest import bill, after petroleum oil, is crude palm oil.” He also added that “Kenya imports $1 billion of palm oil”.
By encouraging local farmers to grow palm oil and processing it within Lamu, the government hopes to keep that money within the Kenyan economy. This project is expected to create approximately 3,000 new jobs.
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Beyond the factory itself, the plant will support a “value chain” that benefits many people, including local farmers who grow the crops, truck drivers who transport the goods, and small business owners who provide services to the new workforce.
Dangote refinery to bring a new era for energy in East Africa
While the palm oil plant focuses on agriculture, an even larger project is being planned by Nigerian billionaire Aliko Dangote, who is preparing to build a massive petroleum refinery in Lamu.
The refinery is expected to serve not just Kenya, but the entire East African region. This project is an enormous undertaking, with an estimated cost between Ksh 2.01 trillion and Ksh 2.07 trillion (USD15.5 billion and USD16 billion).
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Preparations have reached an advanced stage, and construction is scheduled to begin by October 2026. Once the refinery is completed, it will have the capacity to process up to 700,000 barrels of crude oil every day. Experts estimate that the project’s construction period will span four years.
The refinery will ensure a steady supply of fuel for the region and attract many other supporting industries to the country. Together, the palm oil plant and the oil refinery will completely change the economic profile of the county and even the entire country and beyond.
By positioning Lamu as a leader in energy and manufacturing, the government is laying the groundwork for long-term growth and stability for the people of the Coast and the nation as a whole.
