Ruto vows to push through with Sh2tr East Africa oil refinery, amid court fight

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President William Ruto has vowed to push ahead with the planned Sh2 trillion Dangote East Africa oil refinery in Lamu despite hurdles surrounding ownership of the land earmarked for the project.

Speaking on Tuesday, September 29, Ruto said the project would transform the coastal region and create new opportunities for the country and therefore must proceed.

“We know you are the ones who took the refinery matter to court. You are the sponsors because you are not getting what you want from it. You are undermining investment in our country. I will not allow you. You have had enough,” Ruto said.

His remarks came a day after  residents of Chandavai and Magogoni went to court to halt the project until their claims over land ownership, resettlement and compensation are resolved.

According to the residents, their families have occupied, cultivated and developed the land earmarked for the refinery for generations and want the government and developers to address their claims before construction proceeds.

Without directly addressing the residents’ claims over land ownership and resettlement, Ruto accused his opponents of sponsoring the court case to interfere with the refinery plans.

He warned them, saying, “Nataka kuwaambia niko macho sana, hapa hamtoboi.” To mean, “I want to tell you that I am watching very closely. You will not get through here.”

According to the President, the refinery is too important to be allowed to fall victim to what he described as attempts by brokers to manipulate investments through demands for shares.

Ruto said Kenya lost potential investments because investors faced conditions and demands that eventually pushed them to take their projects elsewhere.

He cited Dangote’s earlier attempt to establish a cement company in Kenya, claiming the investor was taken in circles over demands for shares before moving the investment elsewhere.

Ruto also claimed Uganda had wanted to establish a pipeline through Kenya but eventually took the project to Tanzania after facing similar frustrations.

According to him, investors do not want to be burdened with conditions but instead want incentives, which he said his government had offered Dangote.

Ruto further said the government would ensure the refinery investment remained open and transparent, with the State taking a stake in the project and Kenyans getting an opportunity to buy shares.

“The investment in the refinery will be open and transparent. The government will have a stake in the refinery and Kenyans will be able to buy shares through the Nairobi Securities Exchange,” he said.

The residents, however, say they are not opposed to the refinery but want the land ownership, resettlement and compensation issues resolved before the project commences.

The Malindi Environment and Land Court declined to grant their application seeking to stop the refinery’s groundbreaking and development.

However, the court ordered the prevailing status quo on LR No 13061, the disputed parcel in the Hindi/Manda Magogoni area of Lamu, to be maintained until October 14.

The proposed refinery is expected to have a capacity of 700,000 barrels per day, with Dangote saying the project could cost between Sh1.9 trillion and Sh2.1 trillion and be completed by 2030.