Nyoro gives Ruto 14 days to disclose Dangote refinery deal

NAIROBI, Kenya, Oct 6 – Kiharu MP Ndindi Nyoro has given President William Ruto 14 days to make public the agreement between the Kenyan government and Nigerian businessman Aliko Dangote over the proposed Sh2.2 trillion Lamu refinery, escalating a growing political dispute over the mega-project.

Nyoro said Kenyans were entitled to know the terms of the investment, including the identities of the shareholders behind the Kenyan company undertaking the project and the commitments made by the government.

“I want to tell William Ruto it is not a privilege Kenyans are asking for. You have to produce the register of Dangote Refinery shareholders, and you also have to give us the investment agreement,” Nyoro said.

“I am giving you 14 days, William Ruto. If you do not release the Dangote agreement, I will release it myself so that Kenyans can see it.”

Nyoro’s demand comes days after President Ruto and Dangote broke ground for the proposed Dangote East Africa Petroleum Refinery and Petrochemicals project in Lamu on September 30.

The refinery is planned to process up to 700,000 barrels of crude oil per day and is being presented by the government as a major industrial investment expected to strengthen energy security, create jobs and establish Lamu as a regional petroleum and petrochemical hub.

But the project has quickly become the subject of intense political, legal and community scrutiny.

Nyoro has questioned the ownership structure of Dangote East Africa Refinery, arguing that the company established in Kenya for the project should not simply be equated with Dangote’s existing refinery in Nigeria.

He has also raised questions over how much land Kenya is contributing, its value and whether the land and other public assets will translate into an equity stake for the country.

President Ruto has said Kenya will participate in the project through the National Infrastructure Fund, while Treasury Cabinet Secretary John Mbadi has said the government has been allocated a 10 per cent stake and could acquire a larger share if other East African countries do not take up their allocations.

Mbadi said the 10 per cent stake could amount to about Sh200 billion, although he acknowledged that the ownership structure had not been finalised and did not disclose when or from where the government would finance the investment.

Sifuna demands agreement

Nairobi Senator Edwin Sifuna has asked the Senate Energy Committee to compel the government to produce documents relating to the refinery, including the investment agreement, financing arrangements, ownership structure, land commitments, environmental approvals and public participation.

Sifuna has invoked Article 35 of the Constitution, which guarantees citizens access to information held by the State and requires the State to publish and publicise important information affecting the nation.

The senator has maintained that his questions do not amount to opposition to foreign investment, but are intended to establish what Kenya has committed to the project and whether taxpayers are receiving value for their contribution.

President Ruto, however, has rejected demands made at political rallies, telling critics to use parliamentary procedures to obtain information about the project.

The President has also accused some of those questioning the deal of attempting to frustrate investors, while defending Dangote’s investment as an opportunity to transform Kenya’s industrial and energy sectors.

Ruto’s allies have similarly hit back at the opposition.

National Assembly Majority Leader Kimani Ichung’wah, Senate Majority Leader Aaron Cheruiyot and Chief Whip Silvanus Osoro have accused critics of attempting to derail the investment. Ichung’wah said lawmakers seeking government documents should follow parliamentary procedures.

Kalonzo backs project

Wiper leader Kalonzo Musyoka has taken a different position, backing the refinery while insisting that the project must undergo proper scrutiny.

Kalonzo said Kenya welcomes foreign direct investment but should not accept deals that benefit a few individuals at the expense of the public.

“We welcome foreign-direct investment but let this not be confused with what Bwana Ruto is saying, some of us are against this or the other. We just want to get due process,” Kalonzo said.

He linked the refinery to the wider Lamu Port-South Sudan-Ethiopia Transport Corridor, noting that LAPSSET was conceived under the Vision 2030 programme during the administrations of former President Mwai Kibaki and former Prime Minister Raila Odinga.

Kalonzo has argued that opposition to questionable agreements should not be interpreted as opposition to investors, citing previous controversy over the proposed Adani deals involving Jomo Kenyatta International Airport and Kenya Electricity Transmission Company.

The political disagreement has been accompanied by a legal battle over land earmarked for the refinery.

More than 130 residents of Chandavai in Lamu have challenged the project in court, claiming that part of the land identified for the development is ancestral land that their families have occupied, cultivated and developed for generations.

The Environment and Land Court in Malindi has ordered parties to maintain the status quo on the disputed parcel pending an inter partes hearing scheduled for October 14.

The residents have raised questions about compensation, compulsory acquisition, public participation and the alleged destruction of crops and other property.

The land controversy has also prompted questions over the scale of Kenya’s contribution to the project.

Ruto has said the government has identified 9,000 acres for the development and is seeking another 3,000 acres as the project expands to include a special economic zone and a planned urban centre.

That would bring the land requirement under consideration to about 12,000 acres. The President has maintained that the land belongs to the government and that affected families will be compensated where necessary.

The Consumers Federation of Kenya has challenged aspects of the project, seeking information on the proposed equity stake, project approval, procurement process, feasibility studies, financial risks, public participation and government support arrangements.

Thirdway Alliance leader Ekuru Aukot has separately asked the government to disclose the refinery’s ownership and contractual arrangements, including beneficial owners, directors, shareholders, execution copies, schedules, side letters and amendments to the agreement.

The latest legal and political pressure comes as the project enters its construction phase.

Dangote has projected that the refinery will take about 40 months to build and will serve Kenya and the wider East African market. The company has also said the project will source crude from different African producers as well as international markets.

The government estimates the wider investment could create tens of thousands of jobs and stimulate industries around Lamu Port and the LAPSSET corridor.