Omanghana
A Kenyan tribunal has dismissed a consumer group’s challenge to Aliko Dangote’s proposed US$16 billion oil refinery in Lamu County, finding that the petitioner had not established that the project was a public-private partnership.
The Public Private Partnerships Petition Committee said the Consumers Federation of Kenya (COFEK) had not demonstrated that the project fell under the country’s PPP law. The committee therefore found that it lacked jurisdiction to hear the matter.
The ruling removes one legal challenge facing the proposed refinery, although separate cases concerning land rights and access to project information remain unresolved.
Dispute Over Project Documents
COFEK had asked the committee to review approvals associated with the project and order the disclosure of information about possible government participation.
The group sought details on the valuation and financing of any public stake, as well as records concerning public land, project agreements and potential government guarantees.
Treasury Cabinet Secretary John Mbadi told the committee that the refinery was being developed, financed and operated by its private promoter, which would bear the commercial risk. He said discussions about possible government participation were ongoing.
The National Infrastructure Fund told the committee that it had made no investment decision on the refinery.
Land Case Remains Before Court
A separate dispute remains before the Environment and Land Court in Malindi, where 133 residents of Chandavai are challenging the acquisition of land associated with the project.
The residents say their families have occupied and used portions of the land for generations. They are seeking recognition of their interests and raising concerns about consultation and compensation.
Another High Court petition seeks disclosure of the refinery’s financial and legal arrangements, including details of any proposed use of public resources.
Regional Energy Project
The proposed Dangote East Africa Petroleum Refinery and Petrochemicals complex is designed to process up to 700,000 barrels of crude oil per day and supply petroleum products to Kenya and other regional markets.
President William Ruto and Dangote attended the project’s groundbreaking ceremony on September 30, 2026. Dangote has proposed a construction period of about 40 months, with completion targeted around 2030.
Supporters say the project could increase East Africa’s refining capacity and reduce the region’s dependence on imported fuel.
Source: Omanghana
