President William Ruto has appointed Deputy President Kithure Kindiki to lead a government committee that will collaborate with private sector investors on the ambitious Ksh2.2 trillion oil refinery project in Lamu.
On Tuesday, July 8, 2026, during the signing of the Sovereign Wealth Fund Bill at State House, Nairobi, the president emphasized that this refinery will stand as one of the largest investments in the nation.
“We are making progress,” Ruto stated. “I have tasked the Deputy President with chairing the government committee responsible for partnering with private sector investors on what will be a monumental investment for our country, valued at 2.2 trillion shillings.”
He also announced that they have already set a groundbreaking date for the project.
**Lamu Refinery Committee**
Kindiki will manage the government’s coordination with investors as Kenya moves forward with plans to establish the refinery at Lamu Port. This initiative is expected to bolster the country’s energy and logistics sectors.
This announcement aligns with renewed investor interest in the port, highlighted by Dangote Group’s plans to set up a refinery in Lamu.
On Monday, July 6, 2026, Trade Cabinet Secretary Lee Kinyanjui remarked that the planned investment showcases the growing confidence in Lamu as a regional transshipment hub.
His comments followed a discussion with the Horn of Africa Initiative technical team, where officials explored infrastructure development, trade facilitation, and cross-border cooperation involving Ethiopia, Somalia, Sudan, Djibouti, and Eritrea.
The refinery project aims to utilize the operational Lamu Port and the LAPSSET Corridor, providing an export route for crude oil from the South Lokichar Basin in Turkana.
Commercial oil production is set to commence before the end of 2026, facilitated by an 890-kilometre pipeline connecting the oil fields to Lamu.
**Sovereign Wealth Fund Signed into Law**
The announcement coincided with President Ruto’s approval of the Sovereign Wealth Fund Bill, which establishes the Kenya Sovereign Wealth Fund to manage revenues from natural resources and strategic state investments.
The fund will kick off with an estimated Ksh200 billion sourced from petroleum revenues, mining royalties, and proceeds from the divestment of state enterprises, among other approved sources.
It consists of three key components: a Stabilisation Fund to buffer the economy during shocks, a Strategic Infrastructure Investment Fund for financing major projects, and the Future Generations (Urithi) Fund, which will receive at least 10 percent of inflows.
Chief of Staff Felix Koskei hailed the legislation as a significant milestone in Kenya’s economic transformation agenda.
Under this law, the funds will reside at the Central Bank of Kenya, with investments limited to approved instruments. The legislation also prohibits using the fund as collateral for government borrowing.
**Economic Outlook**
The government reports that foreign direct investment has surged from Ksh194 billion three years ago to approximately Ksh414 billion, signaling increased investor confidence as Kenya pursues substantial infrastructure projects.
Former Roots Party deputy presidential candidate Justina Wamae has raised concerns about the timing of the fund’s establishment, pointing to public debt and food security challenges.
However, President Ruto reaffirmed that this new legal framework aims to ensure that the nation’s natural resource wealth benefits both current and future generations.
“May history remember that we honor the trust placed in our generation not by depleting our nation’s resources but by preserving, growing, and expanding them.”
