Consumer group challenges approval of Dangote’s proposed Kenya refinery
The Consumers Federation of Kenya has petitioned a public-private partnerships panel over approval of Dangote’s proposed $16bn refinery in Lamu. The group is seeking records on procurement, due diligence, Kenya’s proposed investment and possible taxpayer liabilities, while a separate court case challenges the land earmarked for the project.
Dangote’s proposed $16bn oil refinery in Lamu, Kenya, is facing a fresh legal challenge after the Consumers Federation of Kenya petitioned a government panel over the project’s approval process and proposed state investment. The federation’s secretary-general, Stephen Mutoro, said on Friday that the group had filed the petition before Kenya’s Public Private Partnerships Petition Committee under the country’s 2021 Public Private Partnerships Act. It is seeking records concerning the contracting authority, procurement process, approvals, appraisal and legal clearance for the refinery.
The consumer group also wants clarification on a reported KSh21.5bn seed allocation and Kenya’s proposed 10 per cent stake, said to be worth about $500m. It has asked the committee to distinguish between money budgeted, committed and disbursed by the Kenyan Government. The petition seeks information about the proposed investment vehicle, the class of shares involved and the payment terms.
It also raises questions about possible government commitments for petroleum-product offtake, market protection and electricity supply, as well as potential liabilities for taxpayers and consumers. Mutoro said the federation had requested the relevant records within seven days. It has also asked the committee to set aside any approval found to have breached the law and return the matter for reconsideration after appraisal, due diligence and conflict checks.
The petition follows a separate case brought by 133 Lamu residents over land designated for the refinery in the Hindi/Manda Magogoni area. A status quo order was reportedly issued on September 25. Mutoro said the land dispute was separate from the consumer group’s petition.
Kenyan President William Ruto and Dangote Industries chairman Aliko Dangote broke ground for the project on September 30. The refinery is planned to process 700,000 barrels of oil per day and is expected to be completed in 2030. Dangote has dismissed the protests as opposition from local marketers and international players and said the project would proceed.
The development is also planned to include a 1,000-megawatt power plant.
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