Kiharu MP Ndindi Nyoro has challenged the government to publicly disclose the ownership structure and financial arrangements surrounding the proposed KSh2 trillion Dangote East Africa Refinery in Lamu, warning that Kenyans need clarity on what the country is committing to the investment.
Nyoro, who has supported the entry of foreign investors into Kenya, said his questions were aimed at establishing the terms under which the refinery project is being developed as President William Ruto prepares to preside over its groundbreaking on Wednesday, September 30.
The proposed refinery is expected to have a processing capacity of 700,000 barrels of crude oil per day and serve Kenya and other markets in the region. Dangote has said East African governments could collectively hold a 30 per cent stake, with Kenya allocated 10 per cent.
In a statement, Nyoro said the government should disclose the shareholders of the Kenyan subsidiary responsible for the refinery.
“We asked about the shareholders of the Kenyan subsidiary of Dangote refinery - Dangote East African Refinery. The response from the President was lengthy but didn’t provide such a simple request. Who are the shareholders of the Kenyan Subsidiary of Dangote East African Refinery?” he said.
The Kiharu MP also questioned the amount of land being allocated to the project and whether its value would be converted into equity or shareholding.
He further demanded details on Kenya's direct financial contribution to the refinery, including whether any premium would be attached to the investment.
Nyoro also raised questions about infrastructure developed by previous administrations, particularly facilities around the Port of Lamu, and whether such public investments would be recognised in the ownership or financial structure of the refinery.
“Will the investment done by the previous governments in regard to Port and all count for anything? How much?” he asked.
The legislator further sought disclosure of any agreements requiring Kenya to purchase refined petroleum products from the refinery, including the prices and conditions attached to such arrangements.
He specifically questioned whether the government had entered into a “take or pay” arrangement that could require Kenya to purchase specified quantities regardless of market conditions.
Nyoro also asked whether public land, assets or investments could have been converted into private shareholding involving any government official, directly or indirectly.
His remarks come amid heightened scrutiny of the refinery's ownership and government commitments ahead of the groundbreaking.
The project also faces a land dispute involving 133 Lamu residents, while a court has ordered the status quo maintained over the disputed parcel pending further proceedings.
Nyoro said he supports Dangote's investment but insisted that the government should make the project's agreements and financial commitments public.
“We are not asking these questions because we don’t know the details, we are only giving them a chance to do what a responsible government should do,” he said.