Treasury Cabinet Secretary John Mbadi has dismissed suggestions that President William Ruto’s support for the proposed Sh2.2 trillion Dangote East Africa Oil Refinery is driven by a personal financial interest in the project.
Mbadi said the President’s involvement should instead be viewed within the government’s wider efforts to attract major investments to Kenya and create an environment where large projects can proceed.
His remarks came ahead of the planned groundbreaking of the Lamu refinery, with questions raised over claims that Ruto owns shares in the project.
“There have also been allegations that the Dangote investment is taking place because President William Ruto has shares in the project. First, we should distinguish an allegation from an established fact,” Mbadi said.
The Treasury CS said reports that Kenya could be offered a stake in the refinery under a proposed regional participation arrangement should not be interpreted as evidence that Ruto personally has an interest in the investment.
“Reports have indicated that Kenya has been offered a potential stake as part of a proposed regional participation formula. That is fundamentally different from an allegation that the president personally owns shares in the project,” he said.
Mbadi said Ruto’s meetings and engagements with Dangote and other international investors form part of his responsibility as President to promote Kenya as a destination for investment.
“President Ruto’s engagement with Dangote and other international investors is part of the government’s responsibility to promote Kenya as an investment destination and to remove administrative barriers that can delay major investment,” he said.
He said the President’s involvement with investors should not automatically be viewed as an indication of personal ownership, noting that the Head of State has a role in advancing the country’s economic interests.
“We all know that the president is the first ambassador of this country, and it is his responsibility, a mandate given by the people of Kenya, to engage and help in promoting Kenya as an investment destination,” Mbadi said.
The CS added that Ruto had publicly indicated that the government was committed to supporting the project by providing the necessary assistance to enable it to move forward.
“Economic diplomacy should not be confused with private ownership,” Mbadi said.
Mbadi said the government’s priority was not the identity of the investors but the economic value that the refinery could deliver to Kenya.
“As a government, our interest is straightforward. To attract productive capital into Kenya, ensure that investment is properly regulated, and ensure that the benefits of investment reach the Kenyan economy and the Kenyan people,” he said.
He said the scale of the project meant its impact could extend beyond oil processing, creating opportunities for different sectors of the economy.
“A project of this scale can generate economic activity far beyond the refinery itself,” Mbadi said.
The CS listed engineering, construction, fabrication, transport, logistics, ICT, security, professional services, hospitality and maintenance among the areas that could benefit from the investment.
He also said Kenyan suppliers and small and medium-sized enterprises could gain business opportunities from the refinery and activities linked to the project.
Mbadi played down the debate over ownership, saying the economic results of the investment were more important to the government.
“The issue of who owns shares in the refinery is secondary. I don’t even care if the whole refinery can be owned by Ndindi Nyoro or Gachagua or whoever,” he said.
“It is okay so long as it is going to create the kind of economic impact that we want for this country.”
The proposed refinery in Lamu is expected to process about 700,000 barrels of crude oil every day. Its groundbreaking ceremony is scheduled for September 30, 2026.
Mbadi said the investment could reduce the amount of foreign exchange Kenya spends on petroleum imports while improving the country’s energy security.
He said the refinery could also drive economic activity around Lamu Port and create opportunities for exports and regional trade.
The Treasury CS maintained that the government’s focus should be on attracting investment that expands economic activity and delivers benefits to Kenyans.
“Investment is about transforming capital into productive capacity. It’s about transforming that productive capacity into jobs and about translating jobs into incomes, because what people are interested in is what goes into their pockets,” Mbadi said.