NAIROBI, Kenya- Dangote Group President Aliko Dangote says he refused to pay kickbacks when pursuing an earlier cement investment in Kenya, recounting how President William Ruto, then deputy president, took him to meet then President Uhuru Kenyatta to explain what had happened.
Speaking ahead of the planned groundbreaking for his $16 billion Lamu refinery, Dangote said his businesses would not pay bribes to secure investment opportunities.
“Corruption takes two people to activate it, the person asking and the giver. We don’t give, because we believe we are bringing jobs and prosperity to the country,” he said.
“We are a listed company and if we are found giving bribes, we will definitely go to jail.”
His account revisits the obstacles surrounding a cement venture that did not materialise, as Kenya prepares to host another major investment by the Nigerian industrialist.
Ruto took him to meet Kenyatta
Dangote said Ruto personally drove him to meet Kenyatta after learning about the demands linked to the proposed cement business.
The meeting, according to his account, gave him an opportunity to explain the difficulties he had encountered.
The remarks did not identify those who allegedly sought kickbacks or disclose the amounts demanded.
Separately on Tuesday, Ruto warned against attempts to frustrate the refinery investment.
He cited Dangote’s unsuccessful cement venture as an example of an opportunity Kenya had lost after the investor faced demands and obstacles.
Dangote’s latest investment proposal is substantially larger.
The planned Lamu refinery is expected to process 700,000 barrels of crude oil a day, with its groundbreaking scheduled for Wednesday, September 30.
Why Dangote settled on Lamu
Dangote said the refinery proposal grew out of discussions with the Africa Finance Corporation and Ruto about fertiliser supply.
The discussions subsequently expanded to oil refining, with Mombasa and Tanzania’s Tanga considered before the group settled on Lamu.
He attributed the choice to Lamu’s deep waters, adequate water supply and available land, factors he said made it suitable for the proposed industrial development.
“Kenya is one market that we don’t actually play with. Outside Nigeria, our next biggest investment is East Africa,” Dangote said.
He put the refinery’s cost alone at $16 billion, roughly Sh2 trillion.
The facility would draw crude from several sources, including regional producers and suppliers in the Middle East and United States.
Dangote also said regional governments had been offered a combined 30 per cent stake, with payments for their shares spread over four years.
Plans extend beyond petrol and diesel
Dangote said the investment would also supply manufacturers with industrial inputs and contribute to Kenya’s electricity generation.
“We’re not only supplying jet fuel, diesel and gasoline. We’re also supplying the plastic industries with polypropylene, we’re also going to do base oil, and we’re going to participate in increasing the power that Kenya generates,” he said.
He also announced plans for a blending plant.
The industrialist placed the developments within a wider $50 billion investment programme over the next four years.
That programme covers investments across Africa, rather than spending exclusively in Kenya.
Land dispute remains before court
The planned groundbreaking comes amid a legal challenge by 133 Lamu residents claiming ancestral rights over land earmarked for the development.
The Environment and Land Court ordered that the existing position on the disputed land be maintained pending further proceedings on October 14.
Dangote Group has said the ruling does not stop Wednesday’s groundbreaking ceremony, although it may affect activities at the site.
The ceremony therefore comes with the land dispute still unresolved.
