Dangote’s proposed $16 billion oil refinery in Lamu, Kenya, has faced a fresh legal challenge after a Kenyan consumer rights group petitioned a government panel over the approval process and the proposed state investment in the project.
The Secretary-General of the Consumers Federation of Kenya, Stephen Mutoro, disclosed on Friday that the organisation had filed a petition before the Public Private Partnerships Petition Committee under Section 75 of Kenya’s Public Private Partnerships Act, 2021.
The federation is seeking details of the contracting authority, procurement process and approvals for the refinery, as well as records relating to its appraisal, due diligence and legal clearance.
It is also requesting clarification on a reported KSh21.5 billion seed allocation and Kenya’s proposed 10 per cent stake in the project, reportedly valued at about $500 million.
The group wants the Kenyan government to clarify whether the funds have been budgeted, committed or disbursed, as well as the vehicle through which the government would acquire its stake, the class of shares involved and the proposed payment terms.
The petition also raises questions about possible government commitments involving petroleum-product offtake, market protection and electricity supply, including potential financial liabilities for taxpayers and consumers.
Mutoro said the federation had requested the relevant records within seven days and asked the committee to set aside any approval found to be non-compliant with the law and refer the project for fresh appraisal, due diligence and conflict checks.
The latest petition comes days after 133 residents of Lamu approached a Kenyan court over land earmarked for the refinery. A status quo order was reportedly issued on September 25.
The land case is separate from the consumer group’s petition, according to Mutoro.
The development followed the September 30 groundbreaking ceremony attended by Kenyan President William Ruto and Nigerian businessman and Chairman of Dangote Industries, Aliko Dangote.
The proposed refinery is expected to have a processing capacity of 700,000 barrels per day and is scheduled for completion in 2030. It would also include a 1,000-megawatt power plant.
Dangote previously dismissed protests over the land and accused local marketers and international players of opposing the project. He said the refinery would proceed despite the protests.
The project is expected to become Kenya’s largest infrastructure project since independence and Dangote’s biggest proposed investment outside Nigeria.
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