Kiharu MP Ndindi Nyoro has demanded that the government disclose the full terms of its proposed investment deal with Nigerian businessman Aliko Dangote’s planned 700,000-barrel-per-day refinery in Lamu, including ownership, land contribution and any money Kenya has committed to the project.
Nyoro said Kenyans should be told who owns Dangote East Africa Refinery, how much land has been allocated to the project, whether the land will count as an equity contribution and what agreements have been reached on infrastructure, investment and the purchase of refined petroleum products.
In a series of questions posted on X, the MP said the government should make the details public, arguing that supporting foreign investment should go hand in hand with transparency over the terms of the deal.
“We are all in support of Foreign Direct Investments and especially from our African investors like Dangote. The questions and responsibilities are on the Government of Kenya, who must not blubber but just make everything public,” Nyoro said.
He singled out the ownership of the Kenyan subsidiary, asking the government to identify its shareholders and provide the company’s ownership structure.
“We asked about the shareholders of the Kenyan subsidiary of Dangote refinery - Dangote East African Refinery. The response from the President was lengthy but didn’t provide such a simple request. Who are the shareholders of the Kenyan Subsidiary of Dangote East African Refinery? Simple. No anger, no explanation. Just the shareholders list.”
Nyoro also questioned the size and value of the land Kenya is expected to provide for the refinery and whether the contribution would translate into shares in the project.
“How much land are we ceding to Dangote refinery? Is the value being converted to Equity or shareholding? What is the value?” he asked.
His questions come as the proposed refinery heads towards its groundbreaking ceremony in Lamu on Wednesday, September 30.
The $16 billion facility is planned to process 700,000 barrels of crude oil each day and is expected to be completed by 2030. The refinery is intended to supply refined petroleum products to Kenya and other East African markets while also supporting petrochemical and other downstream industries.
The planned facility would be larger than Kenya’s former Mombasa refinery and would rank among the biggest refining projects in Africa. Its planned capacity is also slightly above Dangote’s existing refinery in Lagos, which has a nameplate capacity of 650,000 barrels per day.
Dangote Industries says its Nigerian refinery occupies about 2,635 hectares and has extensive pipeline and power infrastructure.
Against this background, Nyoro wants the government to explain whether infrastructure already developed by Kenya will be counted as part of the country’s contribution to the Lamu project.
“In the Lagos Refinery, the company had to build their own infrastructure including a Port and roads. Will the investment done by the previous governments in regard to Port and all count for anything? How much?” he asked.
The MP further sought details of any direct financial contribution by the Kenyan government and whether the state would pay an additional premium on the amount invested.
“How much has Kenya committed to invest directly into Dangote East Africa Refinery? Is there premium in the amount?” he posed.
Nyoro also raised questions about possible agreements for Kenya to purchase refined petroleum products from the planned refinery.
He asked whether the government had committed the country to buying fuel from the facility and what price would apply under any such arrangement.
“Is there any agreement committing Kenya into off take of the refined products? At what cost?” he asked.
The proposed refinery is also facing a legal dispute over land in Lamu.
A Malindi Environment and Land Court has ordered the status quo to be maintained on a parcel of land in Hindi/Manda Magogoni after 133 residents challenged its use, claiming ancestral ownership.
The case is set for an inter partes hearing on October 14.
Dangote has said the court order will not prevent the planned groundbreaking ceremony, although it could affect some activities at the site. Heavy construction equipment has already been brought to the Port of Lamu ahead of the event.
Nyoro maintained that his questions were aimed at securing public disclosure of the investment terms and were not a rejection of foreign investment.
“If the government cannot provide these details, we will do so on their behalf. We are not asking these questions because we don’t know the details, we are only giving them a chance to do what a responsible government should do. We are African and Africa is our Business,” he concluded.