Ruto sets one-week countdown for Sh2 trillion Lamu refinery

President William Ruto has told the United Nations that Kenya expects to break ground on a Sh2.07 trillion oil refinery in Lamu within a week.

Ruto made the announcement while addressing the 81st United Nations General Assembly in New York on Wednesday.

“In one week, we expect to break ground on the East Africa refinery in Lamu, capable of processing 700,000 barrels of oil a day, an investment of approximately 16 billion dollars,” Ruto told the assembly.

The President cited the refinery as he outlined Africa’s natural resources and domestic capital as potential drivers of industrial development.

Ruto said Africa has more than $4 trillion (Sh517.8 trillion) in domestic capital held across pension funds, insurance assets, sovereign wealth funds and banks.

He called for the mobilisation of the capital to support long-term investment in infrastructure and development across the continent.

Ruto also called for greater access to long-term financing and local-currency funding, arguing that developing countries face higher borrowing costs than developed economies.

He said developing countries borrow at rates two to four times higher than developed nations, while citing estimates that subjective credit ratings cost African countries about $75 billion (Sh9.71 trillion) through higher interest payments and forgone lending.

“Capital must price risk; it must not price prejudice,” Ruto said.

The President also called for reforms to the international financial architecture, including increased lending by multilateral development banks, guarantees and risk-sharing arrangements.

He said governments must also manage debt prudently, strengthen institutions, prepare credible projects, deepen capital markets and honour contracts.

“Reform abroad cannot substitute for accountability at home,” Ruto said.

The 81st session of the UN General Assembly opened on September 8, while the high-level general debate began on September 22.

The debate is scheduled to run through September 26 and September 28, with heads of state and government addressing the Assembly in New York.