President William Ruto has reaffirmed his commitment to pushing ahead with the planned Sh2 trillion Dangote East Africa oil refinery in Lamu. The project, expected to transform the coastal region, has encountered hurdles surrounding ownership of the land earmarked for the project. Ruto emphasized the project's significance, stating it would create new opportunities for the country.
The court case was filed by residents of Chandavai and Magogoni, who claim their families have occupied, cultivated, and developed the land earmarked for the refinery for generations. They want the government and developers to address their claims over land ownership, resettlement, and compensation before construction proceeds. The residents are not opposed to the refinery but seek resolution of the land issues.
Ruto accused his opponents of sponsoring the court case to interfere with the refinery plans. He warned them, saying he is watching closely and will not allow them to undermine investment in the country. The President cited previous instances where investors faced conditions and demands that eventually pushed them to take their projects elsewhere.
According to Ruto, Kenya lost potential investments due to such demands. He mentioned Dangote's earlier attempt to establish a cement company in Kenya, which was moved to another location after facing similar frustrations. Ruto also claimed Uganda had wanted to establish a pipeline through Kenya but eventually took the project to Tanzania.
The President assured that the government would ensure the refinery investment remains open and transparent. The State will take a stake in the project, and Kenyans will have the opportunity to buy shares through the Nairobi Securities Exchange. This, Ruto said, will promote transparency and inclusivity in the project.
The proposed refinery is expected to have a capacity of 700,000 barrels per day, with a projected cost between Sh1.9 trillion and Sh2.1 trillion. The project is slated for completion by 2030. The Malindi Environment and Land Court declined to grant an application seeking to stop the refinery's groundbreaking and development.
The court, however, ordered the prevailing status quo on the disputed parcel of land in the Hindi/Manda Magogoni area of Lamu to be maintained until October 14. This allows for further negotiations and resolution of the land ownership and compensation issues.
Key points
- President Ruto vows to push ahead with the Sh2 trillion Dangote East Africa oil refinery in Lamu.
- Residents of Chandavai and Magogoni have filed a court case over land ownership and compensation.
- The refinery is expected to have a capacity of 700,000 barrels per day and be completed by 2030.
