Treasury Cabinet Secretary John Mbadi has dismissed suggestions that President William Ruto's support for the proposed Sh2.2 trillion Dangote East Africa Oil Refinery is driven by a personal financial interest in the project. Mbadi said the President's involvement should instead be viewed within the government's wider efforts to attract major investments to Kenya and create an environment where large projects can proceed. His remarks came ahead of the planned groundbreaking of the Lamu refinery, with questions raised over claims that Ruto owns shares in the project.
Mbadi emphasized that reports indicating Kenya could be offered a stake in the refinery under a proposed regional participation arrangement should not be interpreted as evidence that Ruto personally has an interest in the investment. He distinguished between allegations and established facts, stating that the President's engagement with Dangote and other international investors is part of his responsibility to promote Kenya as a destination for investment.
The Treasury CS said Ruto's meetings and engagements with Dangote and other international investors form part of his responsibility as President to promote Kenya as a destination for investment. Mbadi added that the President's involvement with investors should not automatically be viewed as an indication of personal ownership, noting that the Head of State has a role in advancing the country's economic interests.
Mbadi said the government's priority was not the identity of the investors but the economic value that the refinery could deliver to Kenya. He stated that the government's interest is to attract productive capital into Kenya, ensure that investment is properly regulated, and ensure that the benefits of investment reach the Kenyan economy and the Kenyan people.
The proposed refinery in Lamu is expected to process about 700,000 barrels of crude oil every day, with its groundbreaking ceremony scheduled for September 30, 2026. Mbadi said the investment could reduce the amount of foreign exchange Kenya spends on petroleum imports while improving the country's energy security. He also said the refinery could drive economic activity around Lamu Port and create opportunities for exports and regional trade.
Mbadi listed engineering, construction, fabrication, transport, logistics, ICT, security, professional services, hospitality, and maintenance among the areas that could benefit from the investment. He also said Kenyan suppliers and small and medium-sized enterprises could gain business opportunities from the refinery and activities linked to the project.
Mbadi played down the debate over ownership, saying the economic results of the investment were more important to the government. He expressed that the issue of who owns shares in the refinery is secondary, emphasizing that the project's economic impact is what matters most. The CS maintained that the government's focus should be on attracting investment that expands economic activity and delivers benefits to Kenyans.
Key points
- The Treasury CS emphasized that President Ruto's engagement with investors is part of his role to promote Kenya as an investment destination.
- The proposed refinery is expected to process 700,000 barrels of crude oil daily and create economic activity beyond oil processing.
- Mbadi prioritized the project's economic impact over ownership, stating that benefits to Kenyans are what matter most.
