Dangote defends $16bn Kenya refinery as residents raise compensation, environmental concerns

Nigerian billionaire Aliko Dangote and Kenya's President William Ruto are preparing to inaugurate a $16 billion oil refinery in Lamu, a coastal region in northern Kenya. Upon completion, the facility will process 700,000 barrels of crude oil daily, making it East Africa's largest industrial project in terms of capacity. Prior to the launch, some local residents gathered on the streets to demand enhanced compensation for land utilized in the project.

Dangote, Africa's richest man, addressed the concerns in an interview with BBC's Focus on Africa program, dismissing the protests as mere games played by local marketers and international entities, and reaffirming the project's scheduled completion by 2030. The refinery will be the sole one in East Africa and will be Kenya's most significant infrastructure project since gaining independence, surpassing the $5.1 billion Standard Gauge Railway.

Dangote refuted the compensation allegations, stating that the company only utilized the portion of land allotted by the government and was not swayed by the protests. Walid Ali, co-founder of the Save Lamu campaign group, expressed concern over the environmental implications of the project, requesting the findings from the environmental impact assessment to understand proposed mitigation measures.

Ali alleged that the company has not engaged with the local community, only communicating through the government. Despite facing criticism over the decision to build the refinery in Kenya, a nation not producing oil, Dangote and Kenya's Energy and Petroleum Minister Opiyo Wandayi argued that the refinery would import crude oil from the global market, not limited to the region.

The refinery will also house a 1,000-megawatt power plant, addressing reliable electricity as a critical bottleneck for industrialization in Africa. Dangote has several other projects worth $50 billion, including plans to generate 10,000 megawatts of power across Africa by 2030, potentially doubling that capacity based on demand.

The Lamu refinery represents Dangote's largest investment outside Nigeria, with construction slated to commence on November 1.