President William Ruto has stated that if he were to follow Aliko Dangote's business projects as closely as former Nigerian President Olusegun Obasanjo did, he would be accused of micromanaging in Kenya. Ruto made these remarks during the groundbreaking ceremony of Dangote's East Africa Refinery in Lamu. Obasanjo had described how personally involved he was in monitoring Dangote's industrial projects in Nigeria, receiving regular updates on progress and intervening when construction work stalled.
Obasanjo recounted an instance where he received reports that work at a project site had stopped, and he had security personnel monitoring the site, receiving reports on whether contractors were working. This allowed him to contact Dangote when progress was delayed. Obasanjo emphasized that while Dangote's projects were private investments, he closely followed their progress due to their importance to Nigeria's industrial development.
Ruto used Obasanjo's account to explain Kenya's decision to discourage cement imports and encourage local production. In 2023, Kenya decided not to continue importing cement when the country had the raw materials needed to produce it locally. The government subsequently imposed a levy on imported cement, prompting some foreign investors to leave Kenya because they were unwilling to expand their local production facilities.
The policy has since contributed to a shift in the ownership and production structure of Kenya's cement industry. Ruto welcomed a recent investment by a cement company under its new ownership to expand production capacity in Kenya. He linked the cement story to Dangote's experience in Nigeria, where the businessman faced difficulties before establishing a major manufacturing operation.
Obasanjo described the challenges Dangote faced while expanding his cement business, including obstacles created by an international cement company. Dangote eventually established a major cement business that expanded across Africa, with the group now operating cement plants in several countries. Ruto said this experience demonstrated the importance of African countries supporting investors willing to invest in local manufacturing.
Ruto's administration has encouraged investors to establish production capacity locally rather than relying on imported goods. The President noted that Kenya's policy aims to support investors who are willing to put capital into local manufacturing. Dangote's East Africa Refinery in Lamu is expected to create 60,000 jobs and has been hailed as a significant investment in the region.
The Lamu refinery project is valued at Sh2.2 trillion and is expected to have a significant impact on the local economy. Ruto's comments highlight the importance of striking a balance between supporting investors and avoiding micromanagement. The President's remarks also underscore Kenya's commitment to promoting local manufacturing and reducing reliance on imports.
Key points
- Ruto says he would be accused of micromanaging if he monitored Dangote's projects like Obasanjo.
- Kenya has discouraged cement imports and encouraged local production since 2023.
- Dangote's East Africa Refinery in Lamu is expected to create 60,000 jobs.
