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Published July 10, 2026businesscementeconomy

Government seeks regional backing for Lapsset as Dangote confirms Sh2.2tn Lamu refinery

This is ahead of the Horn of Africa Trade Ministers' Meeting scheduled for Ethiopia in September.

Source-backed market reading focused on the local industrial developments, project signals, and operating consequences that are actually worth tracking.

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This is ahead of the Horn of Africa Trade Ministers' Meeting scheduled for Ethiopia in September. Trade and Investment CS Lee Kinyanjui speaks during a meeting with the technical team of the Horn of Africa Initiative in Nairobi/ HANDOUT Kenya is seeking stronger regional support for the Lamu Port-South Sudan-Ethiopia Transport Corridor as the government moves to position the country as the Horn of Africa's leading trade, logistics and industrial hub.

This is on the back of the planned construction of a $17 billion (Sh2.2 trillion) oil refinery by Nigerian billionaire Aliko Dangote, where Lamu has been chosen as the project site. Trade and Investment CS Lee Kinyanjui said Kenya is pushing for deeper regional economic cooperation through improved transport infrastructure, seamless border operations and stronger regional value chains to unlock intra-African trade and attract large-scale investments.

Speaking after meeting the technical team of the Horn of Africa Initiative which is in Nairobi, Kinyanjui said the region must shift its focus from merely constructing infrastructure to ensuring roads, ports, railways and logistics systems directly support trade, industrialisation and job creation.

"Trade is one of the strongest foundations for regional peace, stability and shared prosperity. Kenya is committed to deepening economic cooperation with our neighbours in the Horn of Africa, including Ethiopia, Somalia, Sudan, Djibouti and Eritrea," Kinyanjui said.

The Nairobi meeting comes ahead of the Horn of Africa Trade Ministers' Meeting scheduled for Ethiopia between September 2 and 3, with Kenya keen to use the platform to front inftrastracture development support. Kinyanjui said the meeting should deliver practical measures that remove non-tariff barriers, improve border efficiency and strengthen regional value chains to accelerate economic integration.

Friederike Hemker, head of development cooperation for Sudan, emphasised that the Horn of Africa region needs strategic investments in transport infrastructure, trade facilitation, and efficient logistics corridors to unlock its economic potential. The renewed push comes as Dangote Group confirmed plans to build a 700,000-barrel-per-day oil refinery in Lamu to serve the wider East African market, significantly reducing the region's dependence on imported refined petroleum products.

The refinery, one of the largest industrial investments proposed in East Africa, is expected to complement the strategic location of Lamu Port, which Kenya is positioning as a major transshipment and logistics hub for cargo destined for the Horn of Africa and the wider continent.

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Government seeks regional backing for Lapsset as Dangote confirms Sh2.2tn Lamu refinery

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Document: The Star Kenya Business · Source: The Star Kenya Business

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