President William Ruto announced that Kenya has reached an agreement with Aliko Dangote to develop a pipeline connecting Turkana to Lamu, facilitating the transportation of crude oil from Turkana to the coastal region. The project, disclosed during a joint interview in Mombasa, is part of broader infrastructure plans to enhance Kenya’s energy sector and economic growth. Ruto emphasized that the pipeline would enable the country to transport oil regardless of initial production volumes, with extraction in Turkana set to begin by December 2026.
The government has secured 9,000 acres in Lamu for the pipeline and refinery project, with plans to acquire an additional 3,000 acres. A 5,000-acre Special Economic Zone (SEZ) is also proposed alongside the initiative. Ruto projected that the facility could account for approximately 12% of Kenya’s GDP, while the investment is expected to elevate foreign direct investment (FDI) to between $6 billion and $7 billion (KSh778 billion to KSh908 billion) in the following year. The project will be constructed on government land, with compensation for affected citizens if additional land is required.
The agreement underscores Kenya’s commitment to local value addition, with Ruto stating that no minerals will leave the country unprocessed. He reiterated the government’s focus on prioritizing Kenyan interests in mineral resource partnerships. The pipeline and SEZ are positioned as catalysts for economic diversification, aligning with Ruto’s push for a service-based economy to drive job creation and achieve double-digit growth, as traditional sectors like agriculture reach saturation.
Ruto also addressed ongoing challenges, including the long-standing squatter issue in the coastal region, pledging to resolve it by 2027 through land title issuance. Additionally, he highlighted efforts to boost youth employment, citing over 300,000 young Kenyans employed through digital platforms and 680,000 securing jobs abroad in the past four years. The president further announced the establishment of an Anti-Narcotics Unit within the Directorate of Criminal Investigations to combat drug trafficking, emphasizing enhanced operational capacity through new vehicles.