Motorists in Kenya are demanding legally binding guarantees that the benefits of the Ksh2.2 trillion Dangote oil refinery project in Lamu will translate into lower fuel prices at the pump.
The Motorists Association of Kenya said on Friday, October 2, that the government must clearly demonstrate how motorists will benefit from the refinery while providing assurances that any gains from the project will be reflected in fuel prices.
“Unless these demands, specifically written assurance on lower fuel prices and full disclosure, are met, the motoring public unconditionally rejects and condemns the current structure of the Lamu Refinery,” the motorists said.
The association also called on the government to make public all contracts and agreements entered into with Dangote Group, arguing that Kenyans have a right to access the terms governing the multi-billion-shilling project.
According to the motorists' lobby, drivers and other road users are among the largest consumers of petroleum products and depend heavily on roads to transport people and goods, yet they were allegedly excluded from consultations surrounding the refinery.
“While the political class and regional trade merchants celebrate this mega-deal as a landmark investment, we note with deep concern that the primary stakeholder, the Kenyan motorist and end consumer, has been completely ignored,” it said.
The association also questioned the government's argument that the refinery could generate savings by reducing high-seas insurance costs.
It said there had been no clear commitment that such savings would eventually be passed on to consumers through reduced pump prices.
The motorists further drew comparisons with Kenya's Turkana oil project, arguing that drivers did not directly benefit from the crude oil produced in the region despite motorists contributing to road infrastructure through the Road Maintenance Levy.
The lobby also criticised previous changes to fuel taxes and levies, including the removal of the Ksh5 per litre fuel subsidy, the doubling of VAT on fuel from eight to 16 per cent and the Ksh7 increase in the Road Maintenance Levy.
It also raised concerns over the Government-to-Government fuel supply arrangement, claiming that motorists had initially been promised greater price stability before pump prices subsequently increased.
“Motorists were promised a six-month price stabilisation guarantee. Instead, prices were increased under the false pretext of Strait of Hormuz tensions,” the Association claimed.
The demands come shortly after President William Ruto criticised what he described as efforts by some Kenyans to undermine or extort billionaire Aliko Dangote over his investment in the Lamu refinery.
Speaking about the project, Ruto questioned calls for the government to disclose the agreement relating to the refinery.
“Imagine people are opposing that refinery in Lamu. Just imagine, yesterday I heard some people asking for the agreement of the Dangote refinery,” he said.
