Kenyan tribunal dismisses consumer group's case against Dangote's Lamu refinery

A Kenyan tribunal has dismissed a petition by the Consumers Federation of Kenya (COFEK) against Aliko Dangote's planned crude oil refinery at Lamu port, according to a ruling dated October 30 and reported by Reuters on Thursday.

The tribunal, Kenya's Public-Private Partnerships Petitions Committee Tribunal, held that COFEK did not establish that the refinery was a public-private partnership (PPP) project. It also said there was no legal basis to compel the release of documents about the development.

COFEK had asked the tribunal to set aside and review any approvals granted to the refinery that did not meet the relevant requirements. It also wanted the government to disclose details of its plan to take a stake in the project, including the investment vehicle, share class, payment terms and evidence of public participation.

The petition was one of several legal challenges to the 700,000-barrel-per-day refinery on Kenya's Indian Ocean coast.

Land case lifted

In September, the Malindi Environment and Land Court ordered parties to keep the status quo on land earmarked for the project, a day before a planned groundbreaking ceremony. The order came after 133 residents of Chandavai said the land was ancestral property their families had occupied and used for generations.

On October 14, the court lifted that order, clearing the way for construction to begin in Lamu.

On August 21, David Ndii, chairman of the Kenyan President's Council of Economic Advisors, announced that Dangote Group had offered East African countries a 30 per cent equity stake in its planned refinery in the region.

Why it matters

Dangote is building a petroleum distribution network across Africa. He said the group had bought 25 per cent of Kenya's petroleum products pipeline network, with the support of the Kenyan President.

He said the group is pursuing pipelines, storage facilities and supply corridors across East, Central and Southern Africa to ease fuel supply problems and move refined products between markets more easily.

He also named a corridor linking Djibouti to Addis Ababa in Ethiopia, with projects in Cameroon and Namibia at various stages.

"We are very aggressive with that," Dangote said when asked about the group's plans for depots, pipelines and other distribution infrastructure.

For Nigerian readers, the push matters because Dangote's refinery at home has been seen as a way to cut Nigeria's reliance on imported fuel. A wider African network could strengthen the group's bargaining power and supply links, though it also spreads its focus and capital beyond Nigeria.

Dangote has also called on African governments to protect domestic industries from unfair foreign competition.

What happens next

Construction at Lamu can proceed after the land order was lifted. The sources did not say whether COFEK plans to appeal the tribunal's ruling.