COFEK Seeks Review of Sh2.2tn Dangote Lamu Refinery Project

The Consumers Federation of Kenya (COFEK) has petitioned the Public Private Partnerships Petition Committee to review Kenya’s involvement in the Dangote East Africa Oil Refinery and Petrochemical Complex in Lamu. COFEK seeks a thorough examination of key aspects of the project, including Kenya’s proposed equity stake, the use of public land, and government support arrangements.

The consumer lobby is demanding access to essential documents, such as approval records, procurement routes, feasibility studies, financial risk assessments, and details of Kenya's investment, including valuation, funding source, and payment schedule. COFEK's concerns arise from a lack of transparency surrounding the project, with no subscription agreement or valuation documents provided.

Additionally, the consumer group questions the reported allocation of Sh21.5 billion for seed capital, emphasizing that such allocations do not guarantee disbursement. COFEK also seeks information on land proposed for the refinery within the LAPSSET Corridor, including ownership, tenure, valuation, and terms of use. Furthermore, the lobby is requesting details of any government support, such as fuel offtake arrangements, market protection, electricity purchases, and revenue guarantees, to evaluate the extent of public exposure to potential financial risks.

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