Kenyan Member of Parliament Ndindi Nyoro has called on the government to reveal the full terms of its proposed investment deal with Nigerian businessman Aliko Dangote's planned 700,000-barrel-per-day refinery in Lamu. Nyoro, who is also the leader of the People's Party of Kenya, wants the government to provide information on the ownership of Dangote East Africa Refinery, the amount of land allocated to the project, and any financial commitments made by the state.
The proposed refinery, which is expected to be completed by 2030, will process 700,000 barrels of crude oil each day and supply refined petroleum products to Kenya and other East African markets. The project, valued at $16 billion, will be larger than Kenya's former Mombasa refinery and rank among the biggest refining projects in Africa. Its planned capacity is slightly above Dangote's existing refinery in Lagos, which has a nameplate capacity of 650,000 barrels per day.
Nyoro raised several questions about the deal, including the ownership of the Kenyan subsidiary, Dangote East African Refinery, and its shareholders. He also inquired about the size and value of the land Kenya is expected to provide for the refinery and whether the contribution would translate into shares in the project. Furthermore, Nyoro asked if the investment done by previous governments in infrastructure, such as ports and roads, would count towards Kenya's contribution to the project.
The MP also sought details of any direct financial contribution by the Kenyan government and whether the state would pay an additional premium on the amount invested. Additionally, Nyoro asked if there was any agreement committing Kenya to purchasing refined petroleum products from the planned refinery and at what cost. His questions come as the proposed refinery heads towards its groundbreaking ceremony in Lamu.
The groundbreaking ceremony for the refinery is set to take place on September 30, 2026, with heavy construction equipment already brought to the Port of Lamu. However, the project is facing a legal dispute over land in Lamu, with 133 residents challenging its use, claiming ancestral ownership. A Malindi Environment and Land Court has ordered the status quo to be maintained on a parcel of land in Hindi/Manda Magogoni.
Nyoro maintained that his questions were aimed at securing public disclosure of the investment terms and were not a rejection of foreign investment. He emphasized that supporting foreign investment should go hand in hand with transparency over the terms of the deal. The MP concluded that if the government cannot provide these details, he and his party will do so on their behalf.
President Ruto and Dangote broke ground on the Sh2.2 trillion Lamu refinery, marking a significant step towards the project's implementation. The refinery is expected to boost trade and regional stability, with the Kenyan government hoping to attract more foreign investment. However, Nyoro's concerns highlight the need for transparency and accountability in such large-scale projects.
Key points
- The Kenyan government has been urged to disclose the terms of its investment deal with Aliko Dangote for the 700,000-barrel-per-day refinery in Lamu.
- The proposed refinery is expected to be completed by 2030 and will supply refined petroleum products to Kenya and other East African markets.
- A legal dispute over land in Lamu has been raised, with 133 residents challenging the use of a parcel of land, claiming ancestral ownership.
