Dangote, Ruto break ground on Kenya refinery

Nigerian billionaire Aliko Dangote and Kenyan President William Ruto will break ground on Wednesday for a $17 billion oil refinery in Lamu, a project expected to reshape East Africa’s fuel supply.

The 700,000 barrel-per-day facility, slated for completion in 2030, will process crude from the Lokichar fields in Turkana County alongside imports from across the region. It is designed to lower fuel costs and reduce foreign currency spent on refined product imports.

“When you look at East Africa, most of the 54 countries in Africa import petroleum products,” Dangote told reporters in Nairobi on Tuesday. “What we are trying to do is to make sure that we become self-sufficient in whatever we consume.”

Dangote said American investors would participate in the project but insisted it remain African-led. He confirmed that Kenya and two other East African countries will acquire a combined 30% stake, with Dangote Group holding 70%.

The lead-up to the groundbreaking was marked by both momentum and friction. On Saturday, 2,930 metric tonnes of heavy machinery arrived at Lamu Port aboard the MV Da Yang. President Ruto toured Dangote’s Lagos refinery on Friday, calling the Kenyan project a gateway to industrialisation that could create 60,000 jobs.

However, the Malindi Environment and Land Court on September 25 ordered the status quo on disputed land to be maintained until October 14, following a petition by 133 Chandavai residents claiming ancestral land rights. The court declined to halt the groundbreaking.

Dangote dismissed the legal challenge. “This is normal for us in Africa. We don’t care,” he said. “Anybody who wants to cause trouble, we’re ready for them.”

Environmental campaigners warn the refinery could damage Lamu Old Town, a UNESCO World Heritage site with fragile marine ecosystems. Dangote attributed the opposition to traders whose business models would be threatened.

SOURCE: AP