The launch of the Dangote East Africa Petroleum Refinery and Petrochemicals project, valued at Sh2 trillion, has sparked debate over the land to be used for the construction of the facility. Kenyan President William Ruto stated that the government has allocated 9,000 acres in Lamu for the project and is seeking an additional 3,000 acres as the project expands. This brings the total land targeted to approximately 12,000 acres.
According to President Ruto, 5,000 acres will be used to establish a special economic zone (SEZ), with the area also expected to host a new town. The investment is estimated to be equivalent to 12% of Kenya's Gross Domestic Product. The project is expected to have a refining capacity of 700,000 barrels of oil per day and create 60,000 jobs, as well as stimulate growth in other industries.
However, concerns have been raised regarding the ownership and compensation of the land. 133 residents of Lamu have filed a case in court, claiming that part of the allocated land is ancestral and they have interests in it. The Environment and Land Court has ordered that the current state of the land be maintained until October 14, when the case will be heard.
President Ruto has assured that the land being used is government-owned and no one will be displaced without compensation. He stated that if there are residents in areas the government will use for the project, they will be compensated by the Kenyan government, not the investor. The president emphasized that it is not feasible to leave the task of acquiring thousands of acres and negotiating with landowners to the investor.
Residents have been demanding to be informed about the exact location and size of the land allocated for the project. Mohamed Rajab, planning secretary of the Kililana Farmers Association, questioned why residents were not provided with information about the project's location. Senator Shakila Abdalla also raised concerns about the lack of information on the size and location of the land.
The debate has also reached the Senate, with Nairobi Senator Edwin Sifuna questioning why Parliament has not been provided with the contract guiding the investment. He expressed concerns that lawmakers are unaware of the commitments Kenya has made to ensure the project is implemented. Other leaders, including People's Party of Kenya leader Ndindi Nyoro, have also called for the government to disclose the ownership structure and value of the land.
President Ruto has stated that Kenya will use its assets, including land, and the National Infrastructure Fund to invest in the project. The project is expected to be completed within 40 months, with equipment already arriving at the Lamu port. Aliko Dangote, the project's investor, has expressed confidence in the project's timeline.
Key points
- The Kenyan government has allocated 12,000 acres of land for the Dangote refinery project in Lamu.
- Concerns have been raised regarding land ownership and compensation for residents.
- The project is expected to create 60,000 jobs and stimulate growth in other industries.
