President William Ruto revealed that Kenya has secured a partnership with Aliko Dangote to construct a pipeline linking Turkana to Lamu, facilitating the transportation of crude oil to the coastal region. Speaking during a joint interview in Mombasa, Ruto stated that oil extraction from Turkana will commence by December 2026, with the pipeline enabling the movement of crude regardless of initial production volumes. The project will be built on government-owned land, with 9,000 acres already secured in Lamu and plans to acquire an additional 3,000 acres. The government has also outlined plans for a 5,000-acre Special Economic Zone, aiming to boost economic activity in the region.
Ruto emphasized that the Lamu refinery project represents approximately 12% of Kenya’s GDP, with projected foreign direct investment ranging between $6 billion and $7 billion (Ksh778 billion to Ksh908 billion) in the following year. He reiterated the government’s commitment to processing all minerals domestically, prioritizing Kenyan interests in mining partnerships. The administration also pledged to address long-standing land tenure issues in the coastal region, with Ruto pledging to issue additional land title deeds before December 2026 and resolve the squatter crisis by 2027.
The President highlighted efforts to tackle youth unemployment, citing over 300,000 young Kenyans employed through digital platforms, ICT hubs, and outsourcing centers. He also noted that 680,000 youth have secured jobs abroad in the past three to four years, encouraging more to leverage the National Employment Authority for international opportunities. Ruto stressed the need to transition toward a service-based economy to sustain growth, as agricultural and resource-based sectors face saturation.
The Lamu refinery project underscores Kenya’s strategic focus on infrastructure and economic diversification, with significant implications for regional development and foreign investment. However, challenges such as land disputes and environmental concerns remain critical areas requiring transparent governance and community engagement to ensure equitable benefits for all stakeholders.