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The transaction also makes Dangote the second-largest shareholder in KPC, giving his group influence over the company's strategic direction and opening the possibility of board representation.
Ruto responded to the senator’s demand for the agreement by saying lawmakers already have a procedure they can use to compel the presentation of government deals before Parliament.
The refinery is expected to generate 1,000 megawatts of electricity and produce one million tonnes of polypropylene, with the wider project covering areas such as energy, petrochemicals, logistics, engineering, manufacturing and marine services.
The facility will be built on land within the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor and is planned to process crude from Kenya's Lokichar fields, other African producers and international sources. Its location next to Lamu Port is intended to allow the movement of crude and petroleum products by sea while supporting a wider logistics and industrial hub
ong the products expected from the facility is polypropylene, which he said could help meet the needs of Kenya’s plastics manufacturers.
The Nigerian billionaire said the refinery idea took shape during a meeting with President William Ruto in Nairobi. The two were initially discussing fertiliser supplies before the conversation turned to the possibility of investing in a refinery.
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.
Dangote said the decision to increase production was driven by the need for Africa to strengthen its own supply of fertiliser and reduce its reliance on imported farm inputs.
According to Dangote, the electricity project will be a major part of the Kenyan investment, with the plant expected to generate about 1,000MW from petroleum coke, also known as petcoke.
The 120-kilometre pipeline will connect Djibouti’s Damerjog port to a fuel distribution facility in Dewele, Ethiopia, and will include storage capacity of about 400 million litres.
The refinery, a joint project between the Kenyan Government and Nigerian billionaire Aliko Dangote, is expected to process crude oil from Lokichar in Turkana County and supply refined petroleum products to markets across East and Central Africa.
The regulator says the IPO is regulated in Nigeria and has not been submitted to the CMA for consideration and approval under Kenya’s legal and regulatory framework.
The month-long offer has already attracted interest from members of the public, with some investors using their savings to buy a stake in the facility.
DP Kindiki said Kenya was working closely with East African Community (EAC) partner states to agree on the most suitable location for the refinery while undertaking the legal, regulatory and administrative preparations necessary for its implementation.
The appointment puts Kindiki in charge of coordinating the government's role in a project expected to reshape fuel supply in East Africa by reducing dependence on imported refined petroleum products.
Africa's richest man, Dangote, at an infrastructure summit in Nairobi last month, said he could replicate his 650,000-barrel-a-day Nigerian refinery in East Africa, provided governments in the region supported the initiative.