Environmental lobby group Greenpeace Africa has told the government to immediately stop the approval process for the proposed Ksh2.2 trillion oil refinery in Lamu, warning that the mega project could cause permanent damage to one of East Africa's most delicate coastal ecosystems.
The proposed refinery, which is being developed through a partnership between the Kenyan government, Nigerian billionaire Aliko Dangote's Dangote Group, and other private investors, is scheduled to break ground this month.
The project is expected to be completed within five years and will have the capacity to process 700,000 barrels of crude oil per day, making it the largest refinery in East Africa and one of the biggest on the continent.
Greenpeace Raises Red Flag Over Environmental Destruction
In a statement issued on Tuesday, July 14, Greenpeace Africa argued that the refinery poses significant environmental risks that could outweigh any economic benefits.
The organisation specifically pointed to Lamu's mangrove forests, coral reefs, and seagrass beds, which it says are not expendable. These ecosystems support fisheries, tourism, coastal protection, and the livelihoods of thousands of residents who depend on them for their daily survival.
"This project threatens to damage one of East Africa's most fragile coastal ecosystems while locking Kenya into a risky fossil fuel future," said Sherelee Odayar, Oil and Gas Campaigner at Greenpeace Africa.
The group warned that a refinery of such magnitude could increase the risk of oil spills, marine pollution, habitat destruction, and deteriorating air quality in the region.
It also cautioned that the project would lock Kenya into long-term dependence on fossil fuels at a time when the world is moving towards cleaner energy sources.
Government Pushes Ahead with Mega Project
Despite these concerns, the Kenyan government has been moving full speed ahead with the project. President William Ruto has already appointed Deputy President Kithure Kindiki to chair a government committee that will coordinate with private investors and employers on the implementation of the refinery.
Speaking during the assent to the Sovereign Wealth Fund Bill at State House on Wednesday, July 8, President Ruto confirmed that a groundbreaking date had already been set.
"It is a Ksh2.2 trillion investment in our country. We have already set up a date for the groundbreaking, for your information," the President said.
The government has set aside Ksh25 billion as seed capital for the project, with other private firms expected to come in under a public-private partnership framework.
According to the government, the project will create up to 60,000 direct jobs and strengthen the country's energy sector.
President Ruto has been a strong champion of the project, arguing that it will help reduce East Africa's dependence on imported refined petroleum products and support industrial growth around the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor.
During the launch of the second phase of the government's Nyota youth empowerment programme, the President said, "Kenya will now build the East African refinery here in Lamu, where we will need 60,000 young people to work".
Legal Challenges Loom
The project is also facing potential legal hurdles. Constitutional lawyer Levi Munyeri has already threatened to move to the High Court to stop the proposed refinery unless the government conducts public participation with residents before construction begins.
In a statement issued on Wednesday, July 8, Munyeri gave the President William Ruto administration a one-week ultimatum, arguing that the Constitution requires public participation before implementing a project of such magnitude.
The Economic Promise Versus Environmental Cost Debate
The proposed refinery, estimated to cost about $17 billion (approximately Sh2.2 trillion), would have a processing capacity of 700,000 barrels per day.
Dangote Industries has said the facility will supply refined petroleum products to Kenya and neighbouring countries including Uganda, Tanzania, South Sudan, and other East African markets, reducing the region's dependence on imported fuel.
The company plans to finance the project through a combination of internally generated cash, bond issuances, and proceeds from a planned initial public offering.
According to Dangote Industries, construction is expected to take between 30 months and three years before the refinery begins processing crude oil.
The company has already completed site selection in Lamu, with soil testing underway and engineering work already started.
However, Greenpeace has dismissed the promise of mass employment as insufficient justification for the investment.
The organisation argues that large fossil fuel projects often generate short-term construction jobs while threatening long-term livelihoods in fishing, tourism, and other local economic activities.
"The promise of thousands of jobs cannot be used to hide the true cost of this investment," Odayar said.
Call for Independent Assessment
Greenpeace Africa is now calling on the government to suspend any approvals for the project until an independent Environmental and Social Impact Assessment (ESIA) is completed, made public, and subjected to meaningful public participation.
"No approvals should move forward without a full, independent environmental and social impact assessment, genuine public participation and transparent scrutiny of the long-term economic, health and ecological risks," Odayar said.
The organisation argues that the assessment should comprehensively evaluate the cumulative impact on Lamu's marine ecosystems and fishing communities, as well as the long-term economic and climate implications of investing in large-scale fossil fuel infrastructure.
A Broader Concern About Kenya's Energy Future
Greenpeace has also warned that the refinery risks becoming a stranded asset as the world accelerates its transition toward cleaner energy.
The organisation says resources earmarked for the project could instead be invested in expanding Kenya's renewable energy sector through solar, wind, and geothermal power, energy storage, and improved electricity access.
"This refinery also risks becoming a stranded asset as the world moves toward cleaner energy. It would also lock Kenya into decades of carbon-intensive development, worsening climate change and its impacts," the group said.
The Road Ahead
As the July groundbreaking date approaches, the controversy surrounding the Lamu oil refinery is likely to intensify.
The government appears determined to proceed with what it sees as a transformative project for Kenya's industrialisation and energy security.
However, environmental groups and some legal experts are equally determined to ensure that proper procedures are followed and that the voices of local communities are heard.
There are still many unanswered questions around the project, including where it will source the crude oil to refine and how exactly it will be financed.
These uncertainties, combined with the environmental concerns raised by Greenpeace Africa and the potential legal challenges, mean that the path to construction may not be as smooth as the government anticipates.
For the thousands of Lamu residents whose livelihoods depend on the region's pristine marine ecosystems, the stakes could not be higher.
As this debate continues to unfold, one thing is clear: the decisions made in the coming weeks will have far-reaching consequences for Kenya's environment, economy, and energy future for decades to come.
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