UGM demands halt to Sh2.2tr Dangote refinery, terms project a 'scam'

Nigerian Businessman Aliko Dangote President William Ruto. [PCS]

The United Green Movement (UGM) Party has opposed the planned Sh2.2 trillion ($16 billion) Dangote East Africa Oil Refinery in Lamu, calling for the project to be stopped.

In a statement issued during the project's groundbreaking ceremony, the party described the refinery as a 'scam' and questioned its economic and environmental impact.

“This is not sustainable economic development as mandated in Article 10 of the Constitution; it is an aggressive, unlawful assault on Kenya’s sovereign assets, a blatant violation of the constitutional framework and an environmental crime forced upon the people of Lamu,” the party said.

UGM claimed the project would involve the allocation of ancestral communal land in Chandavai and Magogoni, which it said has a market value of more than Sh50 billion.

“Dangote is receiving ancestral communal land in Chandavai and Magogoni, with a market value of over KSh50 billion, for free and entirely exempt from taxes. Meanwhile, the indigenous community is left destitute and displaced without a single cent in compensation,” the party said.

The party called for the land to be returned to the Lamu community and compensation paid for environmental damage it alleges has already occurred.

It also called for the Sh660 billion public equity committed to the project to be redirected to renewable energy projects, including solar, wind and tidal power.

UGM further questioned the use of public assets in the project, citing Articles 201 of the Constitution and Sections 50 and 51 of the Public Finance Management Act.

The party also raised concerns over the involvement of Kenya Petroleum Refineries Limited (KPRL) and Kenya Pipeline Company (KPC), questioning why ownership of the proposed refinery was not being retained by the Kenyan government.

“Why is Dangote owning the Lamu Refinery and not Kenya, as was the case with the defunct KPRL?” the party asked.

The project is also facing a legal challenge from about 133 residents of Chandavai.

President William Ruto has criticised the legal challenge, accusing those opposing the project of using court cases to extort investors.

Ruto said the government would back the 700,000-barrel-per-day refinery and plans to list it on the Nairobi Securities Exchange, allowing Kenyans to acquire shares in the project.

Dangote has also dismissed concerns over the lawsuit, describing legal challenges as common when undertaking large projects in Africa. He cited a previous project in Senegal that faced legal challenges and said his legal team was prepared to defend the Lamu project.

The Sh2.2 trillion refinery is expected to process 700,000 barrels of crude oil per day and be completed within three years.

The government estimates the project will create about 60,000 jobs and supply refined petroleum products to Kenya and neighbouring countries.