Business
Ruto Claims Powerful Oil Cartels Are Fighting to Block Dangote Refinery Entry Into Kenya, Vows to Push Ahead
Ruto backed Dangote’s proposal during the summit, saying Africa must move away from exporting raw materials while importing refined and finished products at higher costs.
President William Ruto has said powerful fuel import interests are resisting plans to establish a regional oil refinery with Nigerian billionaire Aliko Dangote, insisting the project will nonetheless proceed as part of a long-term strategy to transform the region’s energy sector.
Speaking on Thursday during the Annual National Prayer Breakfast, Ruto said he had spoken with Dangote about the proposed refinery project and the opposition it was already attracting from players benefiting from continued fuel importation into the region.
“I had a chat with Mr Dangote yesterday, and he was telling me how much resistance has been built by the people we are buying fuel from now because they want to continue buying their fuel,” Ruto said.
“But we have to make those decisions that will change our country, that will transform our country.”
The President said Kenya and its regional partners were pursuing both short-term and long-term measures to address fuel challenges affecting the region.
According to Ruto, the proposed refinery project is aimed at strengthening regional fuel security and reducing dependence on imported petroleum products.
“And this year we are going to start building the refinery here,” he said.
The President noted that his administration had already sent a technical team several months ago to explore refinery models and energy infrastructure opportunities within Africa.
He said the team’s engagements led them to Dangote, whose refinery project in Nigeria has become one of the continent’s largest industrial undertakings.
“When I sent my team about six months ago to look around, they came across Aliko Dangote and what he is doing. They came back to me and I reached out to President Museveni,” Ruto said.
“I have reached out to colleagues in this region and we have agreed.”
Ruto said some reforms and investments may require temporary sacrifices but argued they were necessary for long-term transformation.
“Some of the time we have to forego temporary convenience for long-term transformation, and that is how we are going to build this great nation,” he said.
The remarks come weeks after Dangote publicly offered to build a major oil refinery in East Africa similar to his flagship refinery in Lagos, Nigeria.
Speaking during the Africa We Build Summit in Nairobi in April, Dangote said he was ready to construct a refinery capable of processing 650,000 barrels of oil per day if governments in the region supported the project.
“Even now, I can give commitment to the two presidents who are here; if they will support the refinery, we will build an identical one to the one we have in Nigeria, 650,000 barrels per day,” Dangote said at the summit attended by President Ruto and Ugandan President Yoweri Museveni.
Dangote said the refinery could be completed within four to five years.
He argued that Africa had the resources, markets and financial institutions needed to fund large-scale industrial projects without overreliance on foreign investors.
The businessman also criticised Africa’s dependence on imported finished products despite having abundant raw materials.
“We are a continent of imports. We export raw materials, which means we export jobs, and when we import, we import poverty,” Dangote said.
His Lagos refinery currently processes 650,000 barrels per day and is expected to expand further, making it among the largest refineries globally.
Ruto backed Dangote’s proposal during the summit, saying Africa must move away from exporting raw materials while importing refined and finished products at higher costs.
The proposed East African refinery is expected to trigger further regional discussions involving Kenya, Uganda and other neighbouring countries on energy infrastructure and long-term fuel supply stability.
Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news TIPS, story angles, human interest stories, drop us an email on [email protected] or via Telegram
-
News2 weeks agoWhy Ruto’s Favourite Candidate Adan Mohammed Could Be Locked Out of the KRA Top Job
-
News4 days agoDENTIST IN DISGUISE: How Este Medical Kenya’s Co-Founder Allegedly Prescribed Medicines Outside Her Scope, Lied to Police, and Weaponised the Law Against a Foreign Patient
-
Investigations3 days agoLifeCare on the Brink: SHA Fraud, Stolen Wages, and the Rotten Empire Jayesh Saini Built
-
Business2 weeks agoCourt Confirms Safaricom Customers Data Was Sold To Betting Companies In Seven-Year Cover-Up
-
Americas4 days agoInside FAFSA Fraud: How Kenyan Cybercriminals Siphoned Millions from America’s Sh12 Billion Student Loan System
-
Business1 week agoBlocked: How Mombasa Tycoon Ashok Doshi Has Stopped Imperial Bank Depositors From Getting Their Money
-
Investigations4 days agoLSK On The Spot For Renewing Rogue Lawyer Dennis Onyango’s Licence Despite Mounting Evidence He Held Foreign Investors’ Millions Hostage
-
Business2 weeks agoPaybill 585555: How Airtel Kenya’s Interoperability Gateway Became A Criminal Pipeline Draining Millions From Unsuspecting M-Pesa Users
