Ruto Warns: Dangote Refinery Derailment Attempts Will Fail

• President William Ruto issued a strong warning against individuals attempting to obstruct the planned Sh2.2 trillion Dangote refinery project in Lamu.
• The mega-project, backed by Nigerian businessman Aliko Dangote, is set for a groundbreaking ceremony on Wednesday and is expected to process 700,000 barrels of crude oil daily.
• Ruto accused unnamed "brokers" of demanding shares and conditions, citing past instances where Kenya lost major investments like a cement plant and an oil pipeline.
• Despite an ongoing legal challenge concerning a disputed land parcel, a court ruling allowed the groundbreaking to proceed while directing parties to maintain the status quo.
• The government plans for a transparent investment structure, including a state stake and opportunities for Kenyans to buy shares through the Nairobi Securities Exchange.

President Ruto underscored his unwavering commitment to safeguarding investments, asserting that his administration would not permit any attempts to undermine significant economic projects within the country.

President William Ruto recently issued a strong rebuke to individuals he accused of attempting to impede the progress of the planned Sh2 trillion Dangote refinery in Lamu. Speaking in Kilifi on Tuesday, the President emphasized that such efforts to frustrate the mega-project would not succeed, particularly as the groundbreaking ceremony approached. He specifically warned against those demanding shares and imposing other conditions, stating unequivocally that his administration would not be deceived.

Ruto directly linked these obstructive tactics to past failures in attracting significant foreign investment. He accused unnamed "brokers" of previously contributing to Kenya losing major projects, citing Dangote's earlier attempt to establish a cement plant in the country and the decision to route Uganda's crude oil pipeline through Tanzania instead of Kenya. The President declared his vigilance, asserting that this time, such attempts to derail economic development would be thwarted.

The East Africa Refinery, a monumental undertaking backed by Nigerian businessman Aliko Dangote, is poised to transform Kenya's economic landscape. With an estimated cost of Sh2.2 trillion, the project is designed to boast a substantial capacity of 700,000 barrels of crude oil per day. President Ruto was scheduled to lead the official groundbreaking ceremony for this ambitious facility in Lamu on Wednesday, marking a significant step forward for the nation's industrial capabilities.

The tangible progress of the project is already evident, with a vessel carrying approximately 2,930 tonnes of construction equipment having arrived at Lamu Port on Saturday. This port is expected to play a crucial role in managing the extensive cargo and marine operations associated with the refinery. Beyond its direct industrial output, the refinery is anticipated to attract billions of shillings in foreign investment, support various petroleum processing and related industries, and create numerous job and investment opportunities, thereby positioning the Coast region as a vital economic hub.

Despite the forward momentum, the Dangote refinery project has encountered legal challenges concerning a disputed land parcel in Lamu. A recent court ruling directed all parties to maintain the status quo regarding the contested land, though it notably declined to halt the scheduled groundbreaking ceremony. The Dangote Group subsequently confirmed that while the official groundbreaking would proceed as planned on Wednesday, the court's decision could potentially impact some activities at the site. A further hearing for the case is slated for October 14.

In response to these developments and broader concerns, President Ruto reiterated his government's commitment to protecting investments and ensuring that the Coast region reaps the full benefits of major economic projects. He stressed that the refinery investment would be structured with utmost transparency. This includes the Kenyan government acquiring a stake in the project, alongside providing an opportunity for ordinary Kenyans to purchase shares in an open and transparent manner through the Nairobi Securities Exchange. This approach contrasts with the ongoing major IPO for the Nigerian Dangote Petroleum Refinery, which currently does not allow direct subscription by Kenyan investors via the NSE.

President Ruto articulated a clear vision for attracting and retaining foreign investment, emphasizing the need for Kenya to offer incentives rather than imposing burdensome conditions. He argued that investors seek an environment free from unnecessary hurdles, preferring supportive measures that facilitate business operations. This philosophy underpins the government's strategy to make Kenya a more attractive destination for large-scale projects like the Dangote refinery.

The President firmly stated his administration's resolve to prevent any undermining of investments within the country, asserting that past instances of such interference had been tolerated enough. He highlighted the refinery's potential to not only create jobs and investment opportunities but also to significantly contribute to the transformation of Kenya's economy, reinforcing the Coast's strategic importance as an economic powerhouse.

Source: Reporting from Nairobi, Kenya.