Kenya Consumer Group Demands Details Of $500m Stake In Dangote Lamu Refinery

Kenya’s Consumers Federation (COFEK) has petitioned the Public Private Partnerships Petition Committee seeking detailed information on the Kenyan government’s proposed $500 million investment in the Dangote East Africa Oil Refinery and Petrochemical Complex in Lamu.

The consumer rights organisation is particularly seeking clarification on the proposed 10 per cent equity stake, including how the investment would be funded, payment arrangements and the financial and legal obligations that would accompany Kenya’s participation in the project.

According to reports by Kenya’s Capital FM Africa, COFEK is also demanding access to records relating to the approval, evaluation and procurement process for the proposed refinery.

The organisation wants authorities to release relevant feasibility studies, financial and economic assessments, risk evaluations, public participation records and agreements that could commit government funds or other public resources to the project.

COFEK is also questioning the basis for valuing Kenya’s proposed 10 per cent stake at approximately $500 million.

It has requested the subscription agreement and other related documents to establish how the valuation was arrived at, how the investment would be financed and the rights and obligations that would accrue to the Kenyan government as a shareholder.

The organisation is further seeking clarification on a reported $165.7 million allocation in seed capital for the project.

COFEK wants to know the purpose of the allocation and whether the funds have been committed or disbursed, stressing that a provision in the national budget does not necessarily mean the money has already been released.

The proposed use of public land within the LAPSSET Corridor is another major concern raised by the consumer body.

COFEK is seeking details of the ownership, valuation and terms for making the land available for the refinery project, particularly amid a legal dispute involving residents of the area.

A court has reportedly issued a status quo order concerning the land earmarked for the development.

Beyond the equity investment and land arrangements, COFEK is seeking information on possible government support mechanisms that could expose the Kenyan state to additional financial obligations.

These include potential fuel offtake agreements, market protection arrangements, electricity purchase commitments and revenue guarantees.

The organisation said the information would enable the public to understand the full extent of Kenya’s potential financial exposure from participating in the multibillion-dollar project.

The proposed refinery is part of Dangote Group’s expansion into East Africa and follows an offer by the conglomerate to give East African countries a combined 30 per cent stake in the planned facility.

Kenya is expected to take a 10 per cent interest valued at about $500 million.

The groundbreaking ceremony for the Lamu refinery was held on September 30, 2026, despite a legal dispute over the land designated for the project.

The refinery is expected to form part of Dangote Group’s broader petroleum and petrochemical expansion strategy.

Meanwhile, the group is pursuing plans to expand its existing Lagos refinery from 700,000 barrels per day to 1.4 million barrels per day by 2029.

Dangote is also expanding its fertilizer operations, with plans to raise production capacity from three million tonnes to 12 million tonnes and potentially list Dangote Fertilizer on the stock exchange as early as 2027.

COFEK’s petition could therefore provide greater public scrutiny of the proposed Kenyan investment, particularly regarding the valuation of the equity stake, the use of public resources and the financial risks that may arise from the government’s participation.