Lamu rebuilds itself brick by brick after years of terror attacks
Real Estate
By
Philip Mwakio
| Oct 08, 2026
Towns, trading centres and rural areas in Lamu County that once bore the brunt of attacks by Al Shabaab militants based in Somalia and their local cells are slowly recovering.
Mpeketoni, a major commercial and settlement hub, was heavily targeted in June 2014, when militants launched large-scale raids against people they described as "non-natives".
Other areas hit included Hindi, Witu, Pandanguo, Basuba and Kiunga, as well as the notorious highway stretch near Milihoi, where ambushes and improvised explosive device (IED) attacks have occurred.
Armed militants operating from forested areas such as Boni Forest, Milimani, Baure and Bodhei carried out brazen attacks, killing residents, destroying property and driving away investors.
The scars are still visible today. Destroyed houses can be seen in some centres and markets.
READ MORE
Barbados seeks deeper tourism ties with Kenya, Africa
Wamuchomba demands suspension of tea export levy
Kenya draws Botswana for SACCO lessons
Why AI skills are becoming a new battleground for Kenya's tech industry
Revealed: Why Kenyans are pushed to unsafe housing
Rent over food: Struggles of households to keep roofs over their heads
Nakuru joins race for the skies after elevation to city status
Kenya launches green building hub to power sustainable projects
Mega ship call, Dangote refinery lifts Lamu's economic prospects
Kenya turns to AI, sports events to hit 5.5m visitor target in tourism growth push
But Lamu is rebuilding itself, brick by brick.
It is a slow and painful process for a region once celebrated as a melting pot of cultures, with the potential to become a logistics hub for Kenya and for Africa.
For years, Lamu was regarded as a restive region, and intermittent attacks by Al Shabaab kept it off the investment map.
That story is now being rewritten, thanks to the new Port of Lamu and, more recently, plans for one of Africa's largest oil refineries, to be built by Nigerian billionaire Aliko Dangote.
With a projected output of 700,000 barrels of crude oil a day and a workforce estimated at between 60,000 and 75,000, the question of housing quickly arises.
During his recent Coast tour, President William Ruto said the government would invest an additional Sh7.5 billion to build 3,000 housing units in Lamu County under the Affordable Housing Programme, in readiness for the Dangote East Africa Refinery.
He said the move is meant to meet the expected demand for housing as the county prepares for an influx of workers and visitors when the $2.2 trillion (Sh285.34 trillion) refinery enters the construction stage.
"As a contribution by the Government of Kenya, we are allocating Sh7.5 billion to build 3,000 housing units as we develop the refinery in Lamu County so that those who will live here have decent dwellings," he said at Mokowe on Saturday, where he also issued title deeds to residents.
He noted that the new investment is in addition to ongoing projects in the county, including modern markets and student hostels, which together cost Sh6 billion. He also urged the private sector to invest in complementary facilities and services such as shops, hotels, accommodation, transport and other opportunities that will arise around the project.
To address concerns over land and the refinery project, the government has set up a standing committee of officials from the national and county governments. The committee will handle issues raised by residents and ensure their interests are protected. The president assured residents that they will be fully involved in all decisions about the refinery.
Lamu County Chief Engineer for Roads and Structural Works, David Jomeli, said the county is ready for investment.
He explained that the affordable housing programme is concentrated on two main sites. The first and largest is in Mokowe, in Lamu West, where Phase 1 of 468 units has already been launched, along with an additional 75 shops.
"The 3,000 extra units worth Sh7.5 billion are linked to the Dangote Refinery and will be put up in the Mokowe area, which is the county's headquarters," he said.
According to Jomeli, the estate offers one-, two- and three-bedroom units, priced from Sh960,000 (social housing) to Sh4.8 million (market rate).
The second site is Mpeketoni, where about 1,486 units are planned. Together, the Mokowe and Mpeketoni projects are valued at Sh3.79 billion.
He said Lamu is the only county in Kenya with enough spare land for mega projects like the Dangote Refinery.
"Lamu County covers over 6,474 square kilometres and has a very low population density," Jomeli said.
The identified land includes the Mokowe-Hindi-Korowe belt, where more than 10,000 acres of county and national government land surround the affordable housing area. This is where the 3,000 units for the Dangote Refinery will be built.
Along the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor, another 10,000-plus acres have been reserved at Kililana, near the Lamu Port area, for industrial parks, special economic zones and housing.
The Witu-Mpeketoni area also has large tracts of land belonging to the Agricultural Development Corporation and settlement schemes that are suitable for expansion.
A master-planned Port City of Lamu on a 1,000-acre parcel is also being promoted.
Jomeli's docket covers the overall planning, design, supervision and management of all county roads, structural infrastructure and public works. He added that the county government, under Governor Issa Timamy, is fully ready for more development.