KILIFI, Kenya- President William Ruto says Kenyans will have an opportunity to buy shares in the proposed Dangote East Africa Oil Refinery through the Nairobi Securities Exchange, promising public participation in the project ahead of Wednesday’s groundbreaking in Lamu.
Ruto said the government would also hold a stake in the refinery and pledged transparency in its ownership and operations.
“The Government of Kenya will have a stake in the project, and ordinary Kenyans will also have an opportunity to own shares through the Nairobi Securities Exchange,” he said.
The President made the announcement as he issued 36,826 title deeds at Karisa Maitha Grounds in Kilifi Town to beneficiaries from Rabai, Ganze, Kilifi South and Malindi constituencies.
“We will not allow conmen and profiteers to sabotage genuine foreign investors seeking to invest in our country as has happened in the past,” he asserted.
Public shareholding plan
Ruto’s announcement outlined a route for individual Kenyans to invest in the refinery, although his statement did not specify when shares would become available, their price or the proportion to be offered to the public.
He also did not disclose the size of the government’s planned stake or how it would be financed.
“The ownership and operations of the Dangote East Africa Oil Refinery, which we will launch tomorrow in Lamu, will be open and transparent,” he said.
Dangote Group had previously indicated that it intended to finance the proposed refinery through a combination of internal cash flow, bonds and an initial public offering, according to Reuters. The planned facility would have the capacity to process 700,000 barrels of crude oil a day.
Wednesday’s event is a groundbreaking ceremony for the proposed development, rather than the start of fuel production.
Warning against interference
Ruto also warned against attempts to obstruct foreign investment, saying his administration would protect investors seeking to undertake legitimate projects in Kenya.
“We will not allow conmen and profiteers to sabotage genuine foreign investors seeking to invest in our country as has happened in the past,” he said.
He did not identify the individuals he was referring to in the statement.
His remarks come as the Lamu project faces an unresolved land dispute involving residents who say they were excluded from acquisition, compensation and resettlement arrangements.
The residents’ claims remain before the court and have not been finally determined.
Groundbreaking preparations continue
The Malindi Environment and Land Court has directed parties to preserve the status quo on the disputed property pending a hearing on October 14.
The case involves 133 farmers and occupiers of land in the Hindi/Manda/Magogoni area who are seeking recognition of their interests based on longstanding occupation and cultivation.
Dangote Group said on Tuesday that the ruling would not halt Wednesday’s groundbreaking, although it could affect some activities at the site, Reuters reported.
The planned launch follows Ruto’s visit to Dangote’s refinery in Lagos on September 25, ahead of the Kenyan project’s groundbreaking.
The government has presented the Lamu investment as a means of strengthening energy security and expanding industrial activity around the port.
The ceremony is among the main events of Ruto’s Coast tour, which also includes land ownership and infrastructure programmes.
