NAIROBI, Kenya- National Treasury and Economic Planning Cabinet Secretary John Mbadi has defended the proposed Dangote refinery in Lamu, alleging that some protesters opposing the project want to defraud the government.
His backing comes ahead of Wednesday’s groundbreaking ceremony, as the government presses ahead with preparations while residents pursue a court case over land rights and compensation.
Mbadi’s allegation has not been independently substantiated.
The residents challenging the development say they want recognition of their land claims and compensation, arguing that they are not opposed to the refinery itself.
Residents seek compensation
The dispute involves 133 residents who say the project affects ancestral land they have occupied and cultivated for generations.
In their court application, they argue that the acquisition process failed to address their interests, including homes, farms, crops and other improvements on the land.
They are seeking protection from further development while their claims are considered. Their case names government agencies, Dangote Industries and other respondents.
The Malindi Environment and Land Court has ordered that the existing situation on the disputed property be maintained pending a further hearing in October.
Dangote Group says the ruling will not prevent Wednesday’s groundbreaking, although it could affect some activities at the site.
The company’s position on the ceremony does not resolve the residents’ underlying land claims.
Ruto pledges support for investors
Mbadi’s defence of the project follows President William Ruto’s warning against people he accused of trying to obstruct legitimate foreign investment.
Speaking ahead of the launch, Ruto said the refinery’s ownership and operations would be transparent.
“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.
The President also said Kenya would hold a stake in the project and that ordinary Kenyans would have an opportunity to buy shares through the Nairobi Securities Exchange.
His statement did not specify a share price, listing timetable or the proportion of equity to be offered to the public.
Regional governments offered payment flexibility
The planned refinery would process 700,000 barrels of crude oil a day.
Speaking in Nairobi on Tuesday, Aliko Dangote said governments investing in the project would be allowed to spread payments for their stakes over four years. He also said Rwanda had requested a 10 per cent stake, which was under discussion.
The plant would process crude from regional producers and overseas suppliers, including the Middle East and the United States, Reuters reported.
Kenyan officials have promoted the investment as a means of expanding regional refining capacity, creating employment and supporting industries that use petroleum products.
