Kenya is intensifying efforts to rally regional backing for the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) Corridor as it positions itself as the Horn of Africa’s premier trade, logistics and industrial gateway.
The renewed push follows confirmation by the Dangote Group that it plans to establish a $17 billion (Sh2.2 trillion), 700,000-barrel-per-day oil refinery in Lamu, a project expected to transform the region’s energy landscape and reduce East Africa’s reliance on imported refined petroleum products.
Trade and Investment Cabinet Secretary Lee Kinyanjui said Kenya is advocating stronger regional economic integration through improved transport networks, efficient border systems and strengthened regional value chains to boost intra-African trade and attract major investments.
Speaking after meeting the technical team of the Horn of Africa Initiative in Nairobi, Kinyanjui stressed that infrastructure investments must go beyond construction and directly support trade, industrialisation and employment creation.
He noted that regional trade remains a key driver of peace, stability and shared prosperity, adding that Kenya is committed to strengthening economic ties with Ethiopia, Somalia, Sudan, Djibouti and Eritrea.
The discussions come ahead of the Horn of Africa Trade Ministers’ Meeting, scheduled to take place in Ethiopia on September 2 and 3, where Kenya intends to advocate greater support for regional infrastructure development.
According to Kinyanjui, the meeting should prioritise practical measures to eliminate non-tariff barriers, improve border efficiency and deepen regional value chains to accelerate economic integration.
Friederike Hemker, Head of Development Cooperation for Sudan, said strategic investment in transport infrastructure, trade facilitation and efficient logistics corridors is essential to unlocking the Horn of Africa’s economic potential.
Dangote’s planned refinery is expected to reinforce Lamu Port’s role as a major transshipment and logistics hub serving the Horn of Africa and other African markets.
Kinyanjui said the investment reflects growing investor confidence in Kenya’s infrastructure programme and strategic location within emerging global supply chains.
He added that changing global trade routes and disruptions along traditional shipping corridors present an opportunity for Lamu to become a leading cargo redistribution centre for goods arriving from Asia and the Middle East.
Lamu Port remains the flagship project under the Lapsset Corridor, one of Africa’s largest infrastructure initiatives, designed to connect Kenya with Ethiopia, South Sudan and other neighbouring countries through an integrated network of ports, railways, highways, pipelines, airports and resort cities.
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The wider Lapsset project is valued at about $22 billion (Sh2.8 trillion) and is projected to contribute between 2 and 3 per cent to Kenya’s economy annually during implementation, with long-term forecasts suggesting it could lift GDP growth by as much as 8 to 10 per cent.
Kenya has already commissioned the first three berths at Lamu Port, while construction of supporting road infrastructure continues.
Beyond the energy sector, the government is also pursuing plans to establish Kenya as a regional processing hub for critical minerals by encouraging value addition before export. The strategy aims to create manufacturing jobs, increase export earnings and reduce the export of unprocessed raw materials.
Kinyanjui said improving logistics and lowering transport costs remain central to enhancing the competitiveness of Kenyan exports, while ongoing collaboration with neighbouring countries seeks to streamline cross-border movement of goods through Uganda, Tanzania, South Sudan and Ethiopia.
Despite the implementation of the African Continental Free Trade Area (AfCFTA), intra-African trade accounts for only about 17 per cent of total trade. Kinyanjui said addressing inefficient border procedures, inadequate transport infrastructure and high logistics costs will be critical to unlocking the continent’s full trade potential.
