Kenya could use the proposed Dangote East African refinery to establish a petrochemical manufacturing hub, create skilled jobs and expand its industrial base, Principal Secretary for Industry Dr Eusebius Juma Mukhwana has said.
Mukhwana said the project's significance should extend beyond petroleum processing to the development of factories, local enterprises and supporting infrastructure that could transform Kenya's economy.
In a statement outlining the country's industrialisation prospects, the PS said the refinery offered an opportunity to break away from an economic model in which African countries export raw materials and import finished products.
“For generations, Africa has exported raw materials and imported prosperity,” Mukhwana said.
“We export crude oil and import fuel. We export cotton and import clothes. We export hides and skins and import shoes. We export minerals and import machinery.”
He argued that the model had allowed other countries to turn African resources into industries, jobs and wealth, while the continent remained a relatively small player in global manufacturing.
“That economic model must change – and it must change now,” he said.
Refinery could support hundreds of industries
Mukhwana said a well-planned refinery and petrochemical complex could support a wide range of manufacturing activities, including the production of plastic pipes, food and pharmaceutical packaging, fertilisers, industrial chemicals, lubricants, paints, adhesives and synthetic fibres.
Other potential products include insulation materials, industrial tanks, agricultural films and selected automotive components.
The proposed industrial ecosystem could also create demand for steel fabrication, pumps, valves, pipelines, machine maintenance, transport, warehousing, testing laboratories, engineering services and industrial construction.
He said Kenyan-owned small and medium enterprises should be prioritised in competing for these opportunities.
However, Mukhwana cautioned that the industries would not emerge automatically, noting that some would require additional petrochemical plants, technology, financing, suitable inputs and reliable markets.
“Our task is to turn an anchor investment into a deliberate programme of industrial diversification,” he said.
He maintained that the project's value should be assessed by its ability to stimulate wider economic activity rather than by the volume of fuel it could produce.
“A refinery produces fuel. An industrial ecosystem produces an economy,” he said.
Kenya urged to adopt Singapore's industrial model
Mukhwana cited Singapore as an example of a country that built prosperity through manufacturing, efficient ports, competitive infrastructure, technical skills and industrial zones.
He said Kenya could adapt the model to its own circumstances by connecting the proposed refinery to existing and planned industrial, agricultural and transport investments.
These include manufacturing ambitions around Kilifi and Vipingo, the Dongo Kundu Special Economic Zone, agricultural activities at Galana-Kulalu, Konza Technopolis, Tatu City and the LAPSSET corridor.
He also highlighted the role of port and logistics investments, including the regional reach of operators such as DP World.
Mukhwana said the Standard Gauge Railway, major roads and port infrastructure should connect factories to suppliers, workers and markets.
“A port without factories is an underused gateway. A railway without industrial cargo is a missed opportunity. An industrial park without manufacturers is only serviced land,” he said.
He called for a coordinated industrial network extending along major road and rail corridors through Nakuru, Eldoret, Kisumu, Bungoma and Isiolo, with each location developing viable value chains and links to export markets.
Refinery could strengthen regional trade
The PS said Kenya's position along the western Indian Ocean, combined with the ports of Mombasa and Lamu and transport corridors into Eastern and Central Africa, gave the country an opportunity to strengthen its position as a regional trade and manufacturing hub.
He said a refinery of sufficient scale could help Kenya supply refined petroleum products and petrochemical inputs to neighbouring countries.
Uganda, Rwanda, South Sudan, eastern Democratic Republic of Congo and other regional markets could benefit from a more diversified and reliable energy supply network, he said.
Kenya could, in turn, strengthen its logistics, investment, diplomatic and industrial ties across the region.
However, Mukhwana said geography alone would not guarantee economic influence, pointing to the need for competitive production, efficient ports, dependable infrastructure and fair regional partnerships.
He also called for sound environmental stewardship as part of the project's development.
Policy changes needed to attract manufacturers
Mukhwana said Kenya would need predictable policies and a supportive business environment to turn investor interest into manufacturing activity.
He identified efficient Special Economic Zones and Export Processing Zones, competitive electricity costs, industrial land, stable taxation, affordable long-term financing and faster approvals as key requirements.
He also called for stronger quality standards and practical implementation of the Buy Kenya, Build Kenya agenda to create markets for competitive locally manufactured products.
County Aggregation and Industrial Parks, he said, should connect agricultural production to processing and manufacturing.
Technical training would also need to produce welders, machinists, electricians, process technicians and engineers required by industry.
He urged Kenya to use regional and continental trade frameworks, including the East African Community, Common Market for Eastern and Southern Africa and African Continental Free Trade Area, to expand markets for locally manufactured goods.
Mukhwana further argued that foreign investment should generate lasting benefits through local sourcing, technology transfer, supplier development and skilled employment.
“The test is not only how much capital arrives, but how much productive capability remains,” he said.
Environmental concerns must be addressed
The PS urged Kenyans to assess major industrial investment proposals on their economic merits rather than through partisan politics.
He said investors needed predictable rules, while costs, incentives and public obligations should remain subject to rigorous scrutiny.
He also acknowledged the importance of addressing environmental concerns, particularly those affecting Lamu's communities, fisheries, coastline and heritage.
Mukhwana called for independent environmental assessments, public participation, enforceable emissions and wastewater standards, and transparent oversight.
He said economic gains should be demonstrated rather than assumed to outweigh potential environmental harm.
In outlining the priorities for Kenya, Mukhwana identified five areas for development: petrochemical manufacturing, fertiliser and agricultural inputs, engineering and fabrication, automotive components, and a maritime and export-manufacturing corridor linking ports, industrial parks and transport networks.
He cautioned against treating the refinery as a standalone solution to Kenya's development challenges.
“Yes – if we use it to unlock many industries. No – if we expect one project to do the work of an entire nation,” he said.
Mukhwana said the refinery could become a catalyst for industrialisation if supported by sound policies, reliable infrastructure, capable institutions and Kenyan entrepreneurs willing to invest in manufacturing.
He concluded that Kenya needed to prioritise production and value addition rather than remain a market for imported goods.
“Let them say the Dangote refinery was not only where we planned to refine petroleum – it was where we began refining Kenya's industrial destiny,” he said.
