Mbadi Defends Dangote Lamu Refinery, Dismisses Land Compensation Claims as ‘Primitive Politics’

NAIROBI, Kenya, Sep 30 – Treasury Cabinet Secretary John Mbadi has defended the proposed Dangote Lamu oil refinery, saying the project will benefit Kenya despite protests by some residents over land compensation and public participation.

Mbadi dismissed claims surrounding the acquisition of land for the proposed East Africa Oil Refinery in Lamu County, accusing some individuals seeking compensation of attempting to exploit the government through fraudulent land claims.

The CS described the protests and political criticism surrounding the project as “primitive politics”, arguing that the refinery is a major investment that should be protected from political interference.

“It’s unfortunate that politics is playing out in such a serious investment… even if you are in opposition, you know what’s serious and what is not,” Mbadi said.

The Treasury CS spoke as a section of Lamu residents protested over what they said was inadequate compensation and lack of sufficient public participation ahead of the planned groundbreaking of the refinery.

Mbadi, however, maintained that residents had been involved in public participation exercises conducted by the relevant government agencies before the project was approved.

The Cabinet Secretary accused land brokers and what he described as cartels of attempting to interfere with the acquisition process by presenting inflated compensation demands.

“Brokers are trying to con government… how do you ask for Ksh.30 million for a plot valued at Ksh.60,000?” Mbadi posed.

He said the government would not allow individuals to use the refinery project to make what he described as unjustified financial demands.

The dispute over land has emerged as one of the major issues surrounding the proposed refinery, with some residents maintaining that they have legitimate claims to land earmarked for the project.

Mbadi also rejected claims that President William Ruto has a financial interest in the proposed refinery.

The CS said Ruto does not own shares in the project and challenged those making the allegations to verify the ownership structure of the Dangote Group.

“Ruto doesn’t have any shares… you can check on Dangote Group listing. If anything, 30% of shareholding will be open to the East Africa region,” Mbadi said.

His remarks came after People’s Party of Kenya (PPK) leader Ndindi Nyoro alleged that powerful individuals linked to the government were seeking to acquire shares in the refinery for personal benefit.

Mbadi did not provide further details on the proposed regional shareholding structure, but said the project would ultimately provide an opportunity for East African investors to participate.

The dispute comes as preparations continue for the groundbreaking of the proposed East Africa Oil Refinery in Lamu.

The project, associated with Nigerian businessman Aliko Dangote, is expected to be a major investment in Kenya’s petroleum and industrial sectors.

The government has presented the refinery as a potential source of jobs, investment and additional petroleum processing capacity for Kenya and the wider East African region.

The project has nevertheless attracted scrutiny over land acquisition, compensation and public participation, issues that Mbadi said should not derail the planned investment.

The Treasury CS maintained that the government would proceed with the project while addressing legitimate concerns raised through the appropriate legal and administrative channels.