Government shifts focus to economic gains as questions over Dangote refinery ownership persist

The Kenyan government is seeking to shift attention from questions over who owns shares in the proposed Ksh2.2 trillion Dangote East Africa Refinery to the potential economic impact of the investment as preparations for its groundbreaking in Lamu enter the final stage.

National Treasury Cabinet Secretary John Mbadi said on Tuesday that the government’s priority was to attract productive capital, create employment and ensure that the benefits of the investment reach the Kenyan economy.

Mbadi was responding to allegations that President William Ruto has a personal financial interest in the proposed refinery, which is expected to have a processing capacity of about 700,000 barrels of crude oil per day.

He said the allegations should be distinguished from the separate proposal for Kenya to participate in the refinery’s ownership structure.

“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.

Kenya has reportedly been offered a potential equity stake in the project as part of a proposed regional participation arrangement. People Daily has reported that Kenya could take a 10 per cent stake, with Rwanda and Ethiopia also expected to participate in a broader regional shareholding structure.

Mbadi said such government participation should not be interpreted as evidence that the President personally owns shares in the refinery.

He also defended Ruto’s direct involvement in advancing the project, saying the President’s engagement with Aliko Dangote and other international investors was part of his role in promoting Kenya as an investment destination.

“Economic diplomacy should not be confused with private ownership,” Mbadi said.

Ruto has made the refinery part of his broader investment and industrialisation agenda. He met Dangote and Africa Finance Corporation chief executive Samaila Zubairu on the sidelines of the United Nations General Assembly in New York on September 21, where the project was among the investment opportunities being advanced by Kenya.

The President subsequently visited Dangote’s refinery in Lagos on September 25, describing the Nigerian facility as an example of what could be developed in Kenya. The proposed Lamu refinery is expected to process about 700,000 barrels of crude oil daily and is scheduled for groundbreaking on September 30.

The former Suba South lawmaker believes that the immediate question is not who ultimately holds the shares but what the investment could mean for the wider economy.

“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.

The Treasury CS said the refinery could generate employment and create opportunities for Kenyan companies across several sectors.

These include engineering, construction, fabrication, transport, logistics, information and communications technology, security, professional services, hospitality and maintenance.

The project could also provide a foundation for new manufacturing and supply chains around Lamu, while increasing activity at the port and supporting regional trade.

The government has further linked the refinery to reduced foreign exchange outflows from petroleum imports, greater energy security and increased utilisation of Lamu Port.

Other government officials have highlighted potential benefits beyond the petroleum sector. Tourism Cabinet Secretary Rebecca Miano said the project could increase demand for accommodation, business travel and Meetings, Incentives, Conferences and Exhibitions-related services as engineers, executives and other project personnel travel to Lamu.

Dangote himself has described the refinery as potentially opening the door to further investments, arguing that the facility could attract other businesses and create a wider industrial ecosystem around it.

But the project is also facing questions that extend beyond ownership.

Residents in Lamu have called for protection of community land and compensation for affected families before construction proceeds. A Malindi Environment and Land Court has ordered the status quo to be maintained on disputed land until October 14, following a petition by residents who say they have occupied, cultivated and developed portions of the affected land.

The land question is therefore emerging alongside the debate over ownership and economic benefits as Kenya prepares for the refinery’s launch.

He said the measure of the project should ultimately be its contribution to productive capacity, employment and household incomes.

“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,” he said.