Founder and Chief Executive of Dangote Group, Mr Aliko Dangote.
Divisions have continued between experts and the architects of the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor project and some local residents over the proposed Sh2.2 trillion Lamu oil refinery by Africa’s richest man, Aliko Dangote.
Early July, Nigeria’s Dangote Group announced plans to finance a proposed 700,000-barrel-per-day oil refinery in Lamu, Kenya, an investment that will be financed through internal cash flow, bonds and an initial public offering.
The multi-trillion-shilling venture is expected to take up to three years to build and would supply refined petroleum products to Kenya and neighbouring countries, helping to reduce East Africa’s dependence on imported fuels.
Despite the project being expected to bring significant benefits to the region, a section of residents has questioned its viability, while others have opposed it outright over various unresolved issues.
One concern is that they have not been approached or informed about the venture to enable them to give their views.
Lamu Marine Forum environmentalist Mohamed Athman. He expressed concern that if dumping of old, ragged boats inside the Indian Ocean will continue in the area, it will affect marine life, human beings and the economy, including tourism.
Former Save Lamu chairperson Mohamed Athman, who is also the Executive Director of the Lamu Marine Forum, told the Nation on Thursday that they will not allow a project of that magnitude to be "dumped" on them without any form of consultation or involvement.
Mr Athman expressed surprise that they had only learnt about the project through the media, saying this breached the 2010 Constitution, which emphasises public participation.
“We’re unhappy with the way the matter is being handled right from the beginning. Why are they breaching the Constitution that requires public participation? They’re rushing into making blanket announcements about Lamu Oil Refinery at a time when the local mwananchi himself has no prior information? We don’t agree,” said Mr Athman.
He said discussions are already underway to write a letter addressed specifically to investor Aliko Dangote so that their grievances are addressed, failing which they will move to court to stop implementation of the project.
Read: Climate, environmental activists reject Dangote’s proposed Sh2.2 trillion Lamu oil refinery project
Lamu Council of Elders chairperson Shee Mbwana said he will personally undertake grassroots sensitisation forums aimed at mobilising the community to reject the Dangote Oil Refinery project until residents' concerns are addressed.
Mr Mbwana expressed concern that many mega projects undertaken by the Kenyan government in Lamu have ended up violating community rights.
He cited Kililana, Kwasasi, Mashunduani, Magogoni and surrounding areas, where the government acquired huge tracts of land for the establishment of the Lamu Port and military camps, yet evicted residents have not been compensated.
“We no longer have trust in the government. That’s why we want the investor of the Oil Refinery, Aliko Dangote, to approach us directly so that we can air our concerns for urgent redress,” said Mr Mbwana.
The residents also stressed the need for a special Lamu Community Trust Fund to be established.
“If we meet Dangote, our first demand will be that 5 percent of the profits from the intended oil refinery, that’s if it will be established, remain in Lamu and specifically be channelled into a dedicated community trust fund,” said Mr Mbwana.
Ms Raya Famau, the executive director of the Lamu Women Alliance.
Raya Famau, the Executive Director of Lamu Women Alliance (LAWA), drawing lessons from the community's exclusion in the earlier LAPSSET Corridor developments, called for at least 70 percent of the project's thousands of jobs and contracts to be reserved for indigenous locals.
Ms Famau also demanded inclusive, transparent consultations at every phase to avoid a repeat of past industrial projects where residents were trained but ultimately locked out of employment.
She stressed that whenever a project of such magnitude is established in a region, the public should be fully informed about what it entails.
She insisted that information surrounding the Dangote oil refinery project in Lamu remains sketchy and that local residents must be fully involved and consulted.
She reiterated that they are not opposing the project but are demanding transparency and accountability.
“We want real local public engagements and not political or boardroom engagements. As a community, what are we going to benefit from the project? Our demands are anchored on key issues, that’s, the Lamu Community Trust Fund establishment, full compensation of project-affected persons, the project's Environmental Impact Assessment (EIA), employment and the provision of Corporate Social Responsibility (CSR) programmes. Once that’s done, we can consider giving the project our blessings as a community,” said Ms Famau.
Commissioner for Petroleum at the State Department for Petroleum, Ministry of Energy and Petroleum, Mr Joseph Otieno, says the Sh2.2 trillion Dangote Oil Refinery Project is a blessing that will fast-track the country’s development blueprint.
“We’ve been talking about the Lamu Port operationalisation. I believe with the Dangote Oil Refinery in place, that port will now function at a faster pace. The refinery will serve not only Kenya but the entire Eastern Africa region, transforming it into an industrial hub, serving other countries of Eastern and even Southern regions of Africa. This will see to it hotels and other infrastructure like the road networks improved,” said Mr Otieno.
He said the project will adhere to all the set guidelines, procedures and principles in terms of international standards, and environmental assessments, noting that one of the key requirements that financiers are always looking for before any project funding is released is the highest level of compliance.
He further explained that currently petroleum products from the Middle East are imported to Kenya through the Port of Mombasa.
Shipping containers at the Port of Mombasa.
Having an oil refinery at the Coast in Lamu will mean flight premiums from places like Abu Dhabi, Dubai and Arabia will be sorted as products will now be obtained from within reach.
He assured the Lamu residents that the project implementation will be strategic, noting that a series of stakeholder engagements will automatically be undertaken.
He said government teams, investors teams, and joint teams will come down to Lamu to engage the community, stressing that the community is a key stakeholder since it is the host of the intended Dangote Oil Refinery Project.
He called on the local residents to be patient as disclosure meetings will be held to familiarise them with the project, what it entails and their views gathered as well.
“We’re at the very initial stages. People shouldn’t be worried. We shall go step by step. Ground meetings with stakeholders will be conducted. Residents will be educated about the project and its benefits. All this will be done at various levels; National, County and at the very local level where the project site will now be identified and disclosed officially. The locals should know that they’re a critical stakeholder being the host of the project. We want them to have or feel the sense of ownership of that project,” said Mr Otieno.
This, as LAPSSET master plan architects, experts and government officials have defended the investment, describing it as a game changer for a region that was once marginalised.
Former LAPSSET Corridor Development Authority Director-General and CEO Silvester Kasuku described the project as an anchor investment that is expected to boost Kenya’s Gross Domestic Product (GDP) because of its enormous benefits.
Dr Kasuku said Lamu and the wider northern Kenya region would be transformed into an industrial hub, with sectors ranging from plastics to manufacturing benefiting from the refinery.
“Establishing an oil refinery in a place like Lamu catalyses heavy industrialisation by transforming raw crude into essential feedstocks. This anchors secondary manufacturing sectors such as plastics, rubber, and synthetic fibers, hence creating localised supply chains, and boosting the general infrastructure like bulk car parks for commercial freight. This alone triggers several interconnected economic benefits across the wider area of Lamu and its environs. I urge the residents there to embrace the project fully,” said Dr Kasuku.
As the architect of the LAPSSET Master Plan, Dr Kasuku said all the concerns currently being raised by Lamu residents over the proposed Sh2.2 trillion Dangote oil refinery are already addressed in the blueprint.
Dr Kasuku said the LAPSSET Master Plan contains answers to the concerns raised by residents.
The LAPSSET Master Plan outlines a multibillion-shilling regional infrastructure programme connecting Kenya, Ethiopia and South Sudan.
It features seven core mega projects: the Lamu Port, Standard Gauge Railway (SGR), highways, resort cities, international airports, crude oil pipelines and an oil refinery.
Dr Kasuku, who is currently the Presidential Adviser on Governance, including Environmental and Infrastructure matters, assured residents that the government would work closely with them in implementing the Dangote oil refinery project.
“No one will be left behind. I urge them to just embrace, support the project fully. We undertook a strategic environmental assessment report while we were working on the LAPSSET Master Plan. The locals’ concerns regarding job creation, community inclusion and environmental sustainability are already thoroughly integrated within that particular document,” said Dr Kasuku.
He added: “Lamu will have a green industrial city since the oil refinery will employ new, advanced technology and green energy power generation that’s safe for the environment. It’s a project that will employ thousands. There shall be scholarships for local youth, road upgrades among other benefits like what we already did for the operationalised Lamu Port.”
Lamu Port KPA General Manager Captain Abdulaziz Mzee also appealed to residents, leaders and activists in Lamu to embrace the Dangote venture, describing it as a blessing for the region.
Mr Mzee said implementation of such a major project would open up the region to investment and accelerate development.
He cautioned residents and leaders against politicising the venture, noting that it would boost business at the Port of Lamu.
“We welcome the project with open arms. It will increase the number of ships that will dock at Lamu Port to deliver, unload and load oil, thus boosting revenue and trade at the Port of Lamu,” said Mr Mzee.
In Lamu, the project is expected to be established in the Magogoni area near the Lamu Port site in Kililana, Lamu West.
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