President Ruto: Warns Dangote Refinery Profiteers in Kenya

• President William Ruto recently warned against 'profiteers' attempting to obstruct the Sh2 trillion Dangote East Africa Refinery project in Kenya.
• The government will hold a stake in the refinery, and Kenyans will have the opportunity to buy shares via the Nairobi Securities Exchange.
• Ruto emphasized that an enabling environment and incentives, not punitive demands, are crucial for attracting foreign direct investment.
• Kenya's FDI is projected to rise from $1.6 billion in 2022 to $6-7 billion with the Dangote refinery operational.
• The government has allocated Sh10 billion and deployed 300 officials to the Coast region to issue 500,000 land title deeds by December 2026, addressing historical land injustices.

He asserted that the government's role is to provide an enabling environment, ensuring transparency in the ownership and operations of such landmark facilities, and preventing any unauthorized demands for shares from the investment.

President William Ruto recently issued a strong warning against individuals attempting to obstruct major investment projects in Kenya, specifically highlighting the upcoming Dangote East Africa Refinery. Speaking during a development tour of Kilifi and Kwale counties, the President declared that his administration would not tolerate 'profiteers' who seek to derail significant economic initiatives through unreasonable demands or selfish conditions. He emphasized that such actions deter capital inflow and impede the nation's economic progress.

The President underscored the government's unwavering commitment to ensuring the success of the Sh2 trillion refinery project, describing it as a transformative economic catalyst for both Kenya and the broader East African region. He asserted that the government itself would hold a stake in the facility, with opportunities for Kenyan citizens to acquire shares through the Nairobi Securities Exchange. This commitment extends to fostering an environment where investors receive incentives rather than facing punitive conditions, a principle Ruto stated was crucial for attracting and retaining foreign direct investment.

Ruto pointed to previous instances where similar obstructive tactics had frustrated major investors, citing the earlier attempts by Nigerian businessman Aliko Dangote to establish a cement factory in Kenya, as well as the proposed crude oil pipeline between Kenya and Uganda. He reiterated that the government's role is to provide an enabling environment, ensuring transparency in the ownership and operations of such landmark facilities, and preventing any unauthorized demands for shares from the investment.

The President's robust defense of the Dangote refinery project is part of a broader strategy to enhance Kenya's foreign direct investment (FDI) climate. He noted that past frustrations faced by investors had contributed to a decline in FDI, with Kenya recording $1.6 billion in 2022. However, projections indicate a significant rebound, with FDI expected to reach $3.2 billion in 2025. With the Dangote East Africa Refinery becoming operational, the government anticipates a further surge, potentially increasing FDI to between $6 billion and $7 billion.

This ambitious target underscores the government's focus on large-scale projects as drivers of economic expansion. The refinery is expected to generate substantial economic opportunities for Kenyans and bolster the country's foreign reserves. The government's policy aims to create a secure and predictable environment for investors, ensuring that projects like the Dangote refinery can proceed without undue interference, thereby solidifying Kenya's position as an attractive destination for capital.

Beyond industrial investments, President Ruto also addressed the critical issue of land ownership and rights in the Coast region, describing his commitment to resolving the 'land question' as a deliberate effort to transform the area and restore justice to residents. He acknowledged that decades of uncertainty over land tenure had violated the rights of the people, leading to widespread poverty and the constant threat of evictions.

To tackle this long-standing challenge, the government has allocated Sh10 billion towards resolving land disputes and will continue to fund the program in subsequent years. A significant operational push includes the deployment of 300 Ministry of Lands officials to the Coast to expedite the adjudication of government-purchased land. This initiative aims to issue 500,000 title deeds in the region by December 2026. During his recent visit, President Ruto personally issued 36,000 title deeds to residents at Karisa Maitha Stadium in Kilifi town, assuring beneficiaries that the documents were fully paid for by the government and required no payment from them. He lamented the prolonged wait for justice regarding land and development rights in the Coast, emphasizing that 'justice delayed is justice denied.' This rapid response initiative, encompassing land purchase, surveying, and titling, is being implemented across all six Coast counties, with officials remaining until all land is surveyed. Additionally, in Kwale, the President highlighted water security as a priority, outlining plans for major infrastructure projects to address perennial shortages.

Lawyers advising foreign investors in Kenya should note President Ruto's strong commitment to protecting large-scale projects like the Dangote refinery from 'profiteering' and bureaucratic obstruction, signaling a potentially more favorable and secure investment climate. Additionally, the accelerated land titling initiative in the Coast region presents significant developments for property law and due diligence in that area, potentially reducing land dispute risks for future projects.

Source: Original reporting via Kenyan news outlet