A Kenyan tribunal has dismissed a petition challenging the proposed $16bn refinery project being developed by the Dangote Group in Lamu, dealing a setback to efforts by a consumer rights organisation to scrutinise the investment.
The Consumers Federation of Kenya (COFEK) had approached the Public-Private Partnerships Petition Committee Tribunal, seeking a review of approvals granted for the 700,000-barrel-per-day refinery over alleged non-compliance with relevant regulations.
However, the tribunal ruled that the organisation failed to establish that the proposed refinery qualified as a public-private partnership project.
According to a Reuters report on Thursday, the tribunal, in its October 30 ruling, also held that there was no legal basis for compelling the disclosure of documents relating to the project.
COFEK had asked the tribunal to set aside or review any approvals issued for the refinery that did not comply with applicable legal requirements.
It also sought an order directing the Kenyan government to disclose details of its proposed investment in the project, including the investment vehicle, class of shares, payment arrangements and evidence of public participation in the decision.
The petition was among several legal challenges confronting the proposed refinery, which is planned for Lamu port on Kenya’s Indian Ocean coastline.
The $16bn project has attracted regional attention, particularly after the Dangote Group indicated its willingness to accommodate equity participation by other East African countries.
On August 21, David Ndii, chairman of Kenyan President William Ruto’s Council of Economic Advisers, disclosed that Dangote had offered East African countries a combined 30 per cent stake in the planned refinery.
The proposed investment is expected to strengthen regional energy security and reduce dependence on imported petroleum products, while positioning Kenya as a major refining hub in East Africa.
The project has also encountered resistance from some residents of Lamu, who challenged its development in court, leading to an order suspending construction activities.
Despite the legal restriction, Dangote had launched the project in Lamu while the dispute was still ongoing.
The court subsequently lifted the suspension on October 14, allowing construction work to proceed.
The dismissal of COFEK’s petition removes one of the legal obstacles facing the refinery, although the project has previously attracted concerns over regulatory compliance, government participation and its implications for local communities.
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