Petition Filed Over Govt’s Planned Ksh65 Billion Investment in Dangote Refinery

The Consumers Federation of Kenya (COFEK) has asked the government to disclose details of Kenya’s proposed investment in the planned Dangote East Africa Oil Refinery in Lamu.

COFEK has filed a petition before the Public Private Partnerships Petition Committee under the Public Private Partnerships Act, 2021, seeking information on the project’s financing, land arrangements and legal approvals. The consumer organisation is particularly seeking details about Kenya’s reported plan to acquire a 10 per cent stake in the refinery at an estimated cost of USD500 million (about KSh65 billion).

It wants the government to explain how the stake will be acquired, the type of equity involved and how the investment will be financed. COFEK is also asking whether funds set aside for the investment have only been included in the budget, formally committed or already released.

The petition also seeks clarification on a reported KSh21.5 billion seed allocation linked to the project. COFEK wants the government to distinguish between money provided for in the budget and funds that have actually been committed to the refinery.

The federation is further seeking information on any other commitments Kenya may have made to support the refinery. These include possible fuel offtake guarantees, market incentives and energy supply arrangements.

COFEK has also raised questions about approximately 7,000 acres associated with the project. It wants details of the ownership of the land, its valuation and its legal status. The organisation is also seeking clarification on whether the land will form part of Kenya’s contribution to the partnership.

The petition was filed days after President William Ruto and Dangote Industries founder Aliko Dangote attended the groundbreaking ceremony for the refinery in Lamu on 30 September. The project is also facing a separate land dispute at the Malindi Environment and Land Court.  A group of 133 residents from Chandavai is challenging the use of land identified as LR No. 13061 in the Hindi/Manda Magogoni area.

The residents claim ancestral interests in the property and have raised concerns about compensation and the process through which the land was acquired.

The court has ordered the parties to maintain the existing status of the disputed parcel as the case proceeds. The government maintains that the land is part of the Lamu Special Economic Zone and is owned by the state.

The planned refinery is expected to have a processing capacity of up to 700,000 barrels of oil per day. The facility is intended to increase fuel supply, reduce reliance on imported refined petroleum products and support Kenya’s position as an energy hub in East Africa.