By hook or crook: Sh2.2tr Lamu refinery project kicks off amid scrutiny

Dangote Group President Aliko Dangote and President William Ruto unveil a plaque during the Sh2.2 trillion refinery groundbreaking in Lamu on September 30. [PCS]

The groundbreaking of the Sh2.2 trillion Dangote East Africa refinery took place in Lamu County yesterday, with leaders backing a plan by Africa to process its raw materials and reduce imports into the continent.

President William Ruto and the investor Aliko Dangote also warned residents against opposing the projects by going to court, saying they were trying to disrupt a plan that is meant to transform the country and the region.

President Ruto supported Dangote, who had earlier warned that he was prepared to cause trouble to anyone who would stand in the way of the mega project without justification but was ready to address genuine concerns.

Ruto claimed those issuing threats ‘right and centre’ and sponsoring court cases against the refinery project are extortionists, adding that they will not be allowed to reach Dangote for their mission.

“Those who have been issuing threats right and centre and sponsoring court cases are extortionists. There is nobody who will talk to achieve their mission. As you have heard from Dangote himself, he will give big trouble to those who want to fight with him,” said Ruto.

He, however, said the questions raised by the Lamu people about jobs and livelihoods are not obstacles and have to be answered by responsible development.

“So let me give my assurance. Your interests will be taken care of. Your rights will be protected. Your voice will be heard, from today until the day this refinery runs, and beyond,” Ruto said.

He also told residents that land matters will be handled lawfully and fairly and environmental and social impacts will be assessed rigorously. “And the safeguards we agree on will be enforced during construction and during operation,” he assured.

Earlier, Dangote said he was prepared to face those challenging the project without good reasons but promised to take care of the interests of Lamu residents and ensure they get training and jobs.

“Projects of this magnitude require partnerships and trust, more importantly, partnerships with the people of Lamu. We want the indigenous people to participate in the project. We want young Kenyans and East Africans to train and work at the refinery,” he said.

Dangote Group President Aliko Dangote and President William Ruto unveil a plaque during the Sh2.2 trillion refinery groundbreaking in Lamu on September 30. [PCS]

He said he was keen to ensure that Africa comes together to build Africa and industrialise through value addition instead of exporting raw materials.

Dangote said for too long, Africa has been rich in natural resources but is poor because it has failed to create value through processing what it has produced. He said he was determined to see more ships sail away from African ports with products produced within the continent.

He assured that the project will observe high levels of safety and environmental protection and ensure fair treatment for Lamu residents.

The refinery being constructed at Kwasasi village in Lamu mainland is set to create 60,000 jobs where workers will earn a total salary of over Sh2 billion per month.

Some groups staged a demonstration in Malindi and filed a court demand to be compensated for their land and to have other concerns addressed before the construction of the refinery.

Lamu governor Issa Timamy claimed that those who staged a protest against the refinery project and filed a court case are not Lamu residents.

“We in Lamu County fully support the project. Those who oppose the project do not come from this county,” he argued.

The event was attended yesterday by Uganda President Yoweri Museveni, Ethiopia Prime Minister Abiy Ahmed, Togo President Jean-Lucian Kwassi, Benin President Ronuad Wadagni, former Nigerian President Olusegun Obasanjo and delegations from Tanzania, Burundi, South Sudan and Rwanda.

Museveni, who supported the Dangote initiative, said the betrayal of Africa was coming to an end through investments originating from the continent, such as Dangote’s, saying that for too long Africa continued to export raw materials and jobs without getting any meaningful support from outside to reverse the trend.

“The betrayal of Africa is now coming to an end. The biggest mistake has been the export of our raw materials,” he said, adding that he has banned the export of unprocessed minerals from Uganda.

Museveni, however, supported the building of an oil refinery in Uganda to serve his country and the interior.

Noting that Iran has nine refineries, Museveni was pushing Tanzanian president Samia Hassan to build another oil refinery in Tanga so that East Africa can have three more mother refineries.

Dangote with President William Ruto during the groundbreaking of the Sh2.2 trillion East Africa Petroleum Refinery in Lamu. [PCS]

Ahmed backed the Lamu refinery, saying that Africa should not be treated only as a market but as a place that produces and builds for itself and exports.

“I support oil refining coming close to our market. It is going to offer supply and trade options to our region,” he stated.

President Ruto insisted that Africa’s resources must become the beginning of African industry, not the end of the continent’s contribution to global prosperity, adding that the Lamu refinery was designed to process up to 700,000 barrels of crude oil daily and serve the wider Eastern African region.

“The project also envisages up to 1000 megawatts of power generation, part of which could ultimately serve needs beyond the refinery,” he said.

He explained that the project was conceived when he invited Dangote to participate in the Africa We Build summit in Nairobi earlier this year, where the investor agreed to come up with a plan to address East African energy security through a refining platform capable of confronting the continent’s contradiction of exporting crude oil and importing petroleum products at high cost.

He noted that the 2024 Afreximbank report indicated that Africa produced about 6.8 million barrels of crude oil while consuming 4.5 million barrels a day of refined petroleum products.

He noted that last year, Kenya spent Sh530 billion to import petroleum products, adding that the figures show why the country and its neighbours must build the capacity to refine crude oil close to the markets.

“Those figures tell us two things: we have the resources, and we have the market. Yet too much of the value between that resource and that market is still created somewhere else,” he stated.

He said Africa must produce more of what it consumes and add value to more of what it produces and replace imports with locally produced goods.

Ruto said the government will use the National Infrastructure to build projects such as the Lamu refinery, roads, ports and railway and energy, as it will not continue borrowing for development.