The Consumers Federation of Kenya (COFEK), a consumer rights organization, is seeking details of Kenya’s proposed $500 million stake in the Dangote East Africa Oil Refinery and Petrochemical Complex in Lamu.
According to Kenya’s Capital FM Africa, COFEK made the demand through a petition to the Public Private Partnerships Petition Committee.
COFEK is seeking information on the proposed 10% equity stake, including its funding source and payment terms, as well as details of the public land and other government support arrangements linked to the project.
COFEK seeks access to records
COFEK is seeking access to key records that would show how the proposed refinery project was evaluated and approved by the Kenyan authorities, including the process used to select the project, its financial and economic feasibility, the risks associated with Kenya’s participation and whether the public was adequately consulted.
The organization also wants to establish whether any agreements connected to the project could commit government funds or other public resources, giving it a clearer picture of the potential obligations arising from Kenya’s involvement.
COFEK wants clarification on the purpose of the allocation and whether the funds have been committed or disbursed, noting that an allocation in the budget does not necessarily mean the money has already been released.
COFEK is also seeking details on the public land proposed for the refinery within the LAPSSET Corridor, including its ownership, valuation and the terms under which it would be made available. The issue comes amid a legal dispute involving residents of the area, with a court having issued a status quo order concerning the land earmarked for the project.
Beyond the proposed equity investment and land, COFEK wants details of any government support arrangements that could create further obligations for the state.
These include possible fuel offtake agreements, market protection measures, electricity purchases and revenue guarantees, which the organization says would help determine the extent of the financial exposure that Kenya could assume through its involvement in the refinery.
On August 21, 2026, Nairametrics reported that Dangote had offered East African countries a 30% stake in the planned $17 billion refinery, with Kenya expected to take a 10% stake valued at about $500 million.
The groundbreaking of the refinery in Lemu eventually took place on September 30, 2026.
On September 29, 2026, Dangote said a Kenyan court ruling would not halt the planned groundbreaking of the Lamu refinery. The report highlighted the dispute over land earmarked for the project, which is relevant to COFEK’s current request for information on the use of public land and the legal issues surrounding the site.
The proposed Dangote refinery in Lamu forms part of the Dangote Group’s broader expansion strategy, which also includes plans to expand its existing petroleum refinery in Lagos from 700,000 barrels per day to 1.4 million barrels per day by 2029, followed by a planned New York Stock Exchange listing.
The Lagos refinery expansion is being partly funded through Dangote Refinery’s ongoing N2.15 trillion IPO, involving 4.1 billion new shares at N525 each. Nairametrics reported on September 11 that proceeds from the offer will help finance the estimated $14.27 billion expansion programme, with the balance expected from internally generated cash flow and other financing.
Dangote is also expanding its fertilizer business and plans to list Dangote Fertilizer Ltd on the stock exchange, with Aliko Dangote saying on September 29 that the listing could take place as early as 2027. The company is targeting an increase in fertilizer production capacity from 3 million tonnes to 12 million tonnes as part of the group’s wider expansion plans.
