President William Ruto has vowed to protect the KSh2 trillion Dangote refinery in Lamu from brokers, blackmailers and individuals seeking to frustrate the mega investment through demands and intimidation.
Ruto said no investor should be forced to pay for favours or subjected to unnecessary conditions as Kenya seeks to attract more private capital into major projects.
The President made the remarks as he presided over the groundbreaking of the Dangote East Africa Refinery in Mokowe, Lamu County, on Wednesday, September 30.
“This is a Government-enabled, private sector-driven project,” Ruto said, promising to provide the policy certainty, infrastructure and regulation needed to support the investment.
“Government provides policy certainty, coordination, infrastructure and regulation, the conditions that make investment possible,” he said.
Ruto said Kenya must create an environment where investors can put their money into projects without fear of being frustrated after committing their capital.
“So, we must make Kenya a place where investment capital flows, agreements are honoured, projects are delivered and where public interest is harnessed,” he said.
The warning comes a day after Ruto accused “shares brokers” of frustrating investors and said Kenya had lost investment opportunities because of such individuals.
“Because of these shares brokers, Kenya lost investors,” Ruto said in Kilifi on Tuesday.
He also warned those seeking to derail the refinery, saying: “Mimi niko macho mbaya sana. Hapa hamtoboi.”
The President’s remarks come against the backdrop of Dangote’s previous experience in Kenya.
In an interview with Nation, Dangote said his earlier plan to establish a cement plant in Kenya was frustrated after an unnamed government official allegedly demanded a kickback.
Dangote said he refused to pay and later raised the matter with former President Uhuru Kenyatta.
The businessman had announced plans in 2013 to invest about $400 million in a cement plant in Kenya, but the project did not materialise.
Ruto is now seeking to ensure that the much bigger refinery project does not face similar hurdles.
The $16 billion project, valued at about KSh2 trillion, is expected to process up to 700,000 barrels of crude oil per day and supply refined petroleum products to Kenya and the wider East African market.
Ruto said the project is expected to create up to 60,000 direct and indirect jobs and generate more than KSh2 billion in wages every month during construction.
He said local contractors, transporters, engineers, suppliers and other businesses should also benefit from the investment.
The refinery has, however, already faced a court challenge over the land where it is being developed.
A group of 133 Chandavai residents moved to court challenging the project, arguing that the land is ancestral property and raising concerns over compensation, resettlement and the impact on their livelihoods.
The Malindi Environment and Land Court ordered parties to maintain the status quo on the disputed land, with the case set for hearing on October 14.
The order did not stop the groundbreaking ceremony.
Ruto said the Government would ensure the concerns of Lamu residents are addressed as the project progresses.
“Your interests will be taken care of. Your rights will be protected. Your voice will be heard, from today until the day this refinery runs, and beyond,” he said.
He added that land matters would be handled lawfully and fairly and that environmental and social impacts would be assessed during construction and operation.
Ruto said the success of the refinery would ultimately be measured beyond its investment value and oil production capacity.
“This refinery’s scale will be measured in barrels and dollars. Its success must be measured in skills gained, enterprises built, livelihoods protected and public trust earned,” he said.