Kenya to Begin Building Major New Oil Refinery to Power East Africa
Mombasa, 26 July 2026
Construction of Kenya’s massive new refinery starts this September, aiming to process 700,000 barrels of crude daily to secure energy independence and lower fuel costs across East Africa.
A Strategic Pivot to Regional Energy Independence
The East African oil refinery represents one of Kenya’s most ambitious industrial undertakings to date, designed to fundamentally reshape the region’s energy landscape [3]. On 24 July 2026, Kenyan government officials confirmed the finalisation of the engineering, procurement, and construction (EPC) contracts, paving the way for construction to begin by the end of September 2026 [2][3]. With a projected completion timeline of three years, meaning the facility is expected to be fully operational by 2029, the refinery is engineered to process 700,000 barrels of crude oil daily, positioning Kenya as a pivotal hub for refined petroleum products within the East African Community [2][3].
Sourcing Locally and Mitigating Price Volatility
To feed its massive daily processing capacity of 700,000 barrels, the refinery will utilise crude oil sourced directly from regional fields, including those in Uganda and Kenya’s own Turkana County [2][3]. This domestic and regional sourcing strategy is expected to create a highly integrated supply chain that keeps energy revenues within the East African region [2]. Davis Chirchir, the Cabinet Secretary for Energy and Petroleum, emphasised the strategic importance of the venture, stating that the refinery is a cornerstone of the national energy strategy, ensuring that the country achieves self-sufficiency and insulates its economy from global price volatility [2].
Shared Benefits for Turkana’s Host and Refugee Communities
Beyond national macroeconomic indicators, the refinery is poised to deliver tangible social and economic benefits to remote, historically underserved areas such as Turkana County [GPT]. Turkana, which houses the oil fields slated to supply the refinery, is also home to substantial vulnerable populations, including both local host communities and thousands of refugees residing in the Kakuma and Kalobeyei settlements [2][GPT]. The introduction of a localised refining supply chain is anticipated to lower regional fuel prices, which will directly ease transport and logistics costs for humanitarian agencies and local traders alike [GPT].