Health Cabinet Secretary Aden Duale has defended President William Ruto amid growing scrutiny of the government's agreement with Nigerian businessman Aliko Dangote over the proposed Sh2 trillion-plus oil refinery project in Lamu. Duale criticised what he described as unnecessary noise around the investment, saying the project demonstrated growing confidence in Kenya under the Ruto administration. He made these remarks in Garissa town on Saturday.
Duale linked Dangote's investment to what he described as improved investor confidence under the Kenya Kwanza administration. He cited an increase in foreign direct investment from $1.6 billion in 2022 to $3.2 billion currently. Duale attributed the increase to an improved business environment and government efforts to eliminate intermediaries, cartels and corruption.
Duale also criticised those questioning aspects of the Dangote project, saying similar scrutiny should be applied to other major infrastructure and commercial arrangements in the country. He specifically challenged Kiharu MP Ndindi Nyoro and other critics to disclose the ownership of the Nairobi Expressway. Duale argued that those seeking details about the Dangote project should also raise questions about ownership structures in other major projects.
Nyoro has intensified calls for the government to disclose the agreement, including the ownership and shareholding structure of the proposed Dangote East Africa Refinery. He gave President Ruto 14 days to make the agreement public, arguing that Kenyans had a right to scrutinise arrangements relating to the project. Nyoro said Kenyans welcomed the investment but maintained that greater transparency was needed on the arrangements underpinning the project.
The proposed refinery project, estimated at $16 billion, or more than Sh2 trillion, is designed to process up to 700,000 barrels of crude oil per day and is expected to be completed around 2030. The project is expected to create tens of thousands of jobs during construction and generate opportunities in transport, logistics, manufacturing and related industries. Engineering and technology firms have been brought into the project, with Engineers India Limited and Honeywell Technologies securing contracts.
The government has indicated that Kenya will have a 10 per cent allocation in the refinery, while regional governments have been offered up to 30 per cent collectively. Treasury Cabinet Secretary John Mbadi has said Kenya could increase its stake if other participating East African governments do not take up their allocations. President Ruto has also said the government has agreed with Dangote to facilitate the development of a pipeline linking Turkana oil fields to Lamu.
Despite the government's emphasis on the potential economic benefits of the investment, opposition figures have maintained that greater transparency is necessary. There are also separate legal proceedings concerning land earmarked for the refinery. The Environment and Lands Court in Malindi has ordered parties to maintain the status quo over a disputed parcel pending an inter partes hearing scheduled for October 14.
Key points
- The proposed Dangote refinery project is estimated at $16 billion and expected to create tens of thousands of jobs.
- Duale criticised critics of the project, saying they should also scrutinise other major infrastructure and commercial arrangements in the country.
- The government has indicated that Kenya will have a 10 per cent allocation in the refinery, while regional governments have been offered up to 30 per cent collectively.
