The United Green Movement (UGM) Party has expressed strong opposition to the planned Sh2.2 trillion ($16 billion) Dangote East Africa Oil Refinery in Lamu, Kenya. In a statement released during the project's groundbreaking ceremony, the party described the refinery as a 'scam' and questioned its economic and environmental impact. The UGM claimed that the project would involve the allocation of ancestral communal land in Chandavai and Magogoni, which has a market value of over Sh50 billion.
The UGM party argued that the project contravenes Article 10 of the Kenyan Constitution, which mandates sustainable economic development. They also stated that the project is an "aggressive, unlawful assault on Kenya's sovereign assets" and a "blatant violation of the constitutional framework." Furthermore, the party described the project as an environmental crime forced upon the people of Lamu. They demanded that the land be returned to the Lamu community and that compensation be paid for environmental damage allegedly caused.
The UGM party also raised concerns over the involvement of public assets in the project, citing Articles 201 of the Constitution and Sections 50 and 51 of the Public Finance Management Act. They questioned why ownership of the proposed refinery was not being retained by the Kenyan government, citing the example of the defunct Kenya Petroleum Refineries Limited (KPRL). The party called for the Sh660 billion public equity committed to the project to be redirected to renewable energy projects.
The project has faced a legal challenge from about 133 residents of Chandavai, who are contesting the allocation of land for the refinery. President William Ruto has criticized the legal challenge, accusing those opposing the project of using court cases to extort investors. Ruto stated that the government would back the 700,000-barrel-per-day refinery and plans to list it on the Nairobi Securities Exchange, allowing Kenyans to acquire shares in the project.
Dangote has dismissed concerns over the lawsuit, describing legal challenges as common when undertaking large projects in Africa. He cited a previous project in Senegal that faced legal challenges and said his legal team was prepared to defend the Lamu project. The Sh2.2 trillion refinery is expected to process 700,000 barrels of crude oil per day and be completed within three years.
The government estimates that the project will create about 60,000 jobs and supply refined petroleum products to Kenya and neighboring countries. The refinery is expected to have a significant impact on the Kenyan economy, but opponents argue that the benefits do not outweigh the environmental and social costs. The UGM party has called for a halt to the project, citing concerns over its viability and impact.
The Dangote East Africa Oil Refinery project has sparked a heated debate in Kenya, with proponents arguing that it will boost economic growth and opponents citing concerns over environmental and social impacts. The project's fate will likely be determined by the courts and the government's response to the concerns raised by opponents. Key stakeholders will be watching closely as the project unfolds.
Key points
- The United Green Movement Party has opposed the planned Sh2.2 trillion Dangote East Africa Oil Refinery in Lamu, citing concerns over land allocation, environmental impact, and economic viability.
- The project has faced a legal challenge from 133 residents of Chandavai, who are contesting the allocation of land for the refinery.
- The government estimates that the project will create 60,000 jobs and supply refined petroleum products to Kenya and neighboring countries.
