Duale Defends $16 Billion Dangote Refinery Amid Calls for Deal Disclosure

Health Cabinet Secretary Aden Duale has defended Kenya’s proposed $16 billion Dangote refinery in Lamu amid growing calls for the government to disclose details of the investment agreement.

Speaking in Garissa during the opening of new facilities at the Imam Malik Islamic Centre, Duale said the planned refinery showed that international investors had confidence in Kenya’s economy and the direction of President William Ruto’s administration. He said foreign direct investment had increased significantly since Ruto took office, attributing the growth to government efforts to improve the business environment, tackle corruption and remove barriers to investment.

Duale also rejected criticism of the refinery project, arguing that some of its opponents were concerned about the entry of a major new player into the regional energy market. He challenged critics to apply the same scrutiny to other major infrastructure projects, including the Nairobi Expressway. He questioned why some politicians were demanding details of the Dangote agreement while raising fewer questions about the ownership structure of other strategic assets.

His remarks were partly directed at Kiharu MP Ndindi Nyoro, who has called for greater transparency over the refinery deal. Nyoro has urged the government to publish details of the agreement, including information on shareholding, ownership and the obligations of the parties involved.

The MP has said support for foreign investment should not prevent the public from knowing the terms of major projects. He has also raised questions about equity participation, land acquisition and any future commitments involving public resources.

The proposed refinery is one of the largest industrial projects ever planned in Kenya. The investment is estimated at about $16 billion, equivalent to more than Sh2 trillion, and the facility is expected to process up to 700,000 barrels of crude oil per day when fully operational.

The project is planned as an integrated energy complex with refining, petrochemical and power generation facilities. It is expected to position Lamu as a major centre for energy production and industrial activity in the region.

The government has highlighted the potential economic benefits of the project, including jobs during construction and increased activity in transport, logistics, manufacturing and related services.

Officials have also outlined a proposed ownership structure under which Kenya would retain a stake in the project, while other East African countries would be given an opportunity to participate. Treasury Cabinet Secretary John Mbadi has said Kenya could increase its stake if regional partners decline their allocations.

President Ruto has linked the refinery to wider plans for Kenya’s petroleum sector, including infrastructure to connect the oil fields in Turkana to the coast. The proposed connection is intended to support an integrated petroleum value chain serving both the domestic market and regional export markets.

The project also faces a separate dispute over land designated for the refinery. Residents challenging aspects of land ownership and compensation have taken the matter to court. The courts have issued orders preserving the current status of the disputed land as the case proceeds.