The Kenyan government and Nigerian billionaire Aliko Dangote have begun construction of a $16 billion oil refinery in Lamu, Kenya’s northern coastal region. The project, set to be the largest industrial venture in East Africa, aims to process 700,000 barrels of crude oil daily.

The groundbreaking ceremony took place on Wednesday, with Kenya’s President William Ruto and Dangote Industries’ CEO Aliko Dangote in attendance. The refinery is expected to create thousands of jobs and train over 1,000 local residents. Ruto praised Dangote for taking a “reckless” risk in building the Lagos refinery, stating Kenya is now following a similar path.

Local leaders, including Wiper Party’s Kalonzo Musyoka, have expressed support for the project. Musyoka welcomed the investment, calling it a major opportunity for Kenya’s energy sector. He also criticized the previous administration for blocking a Kitui cement plant.

Despite the enthusiasm, the project has faced land disputes. Some local residents have protested, raising concerns over compensation and environmental impact. Reports indicate that the government is working to resolve these issues.

The refinery is part of Kenya’s broader push for industrial self-reliance. It is expected to significantly boost the country’s energy independence and economic growth. The project has drawn attention from African leaders, who see it as a model for regional development.

The project’s success will depend on resolving land conflicts and ensuring fair treatment of local communities. As construction begins, the government and Dangote’s team are under pressure to deliver on promises of job creation and economic benefits.