Kiharu MP Ndindi Nyoro Warns Kenyans of Possible Higher Fuel Prices Under Dangote Lamu Deal

Kiharu MP Ndindi Nyoro has warned that the proposed Dangote refinery in Lamu could make fuel more expensive for Kenyan consumers instead of lowering pump prices.

Nyoro raised concerns over the terms of the proposed East Africa Dangote Petroleum Oil Lamu Refinery, arguing that Kenya could lose the ability to source petroleum products from cheaper international markets if it becomes tied to the facility.

Speaking during an interview on Dr King’ori’s YouTube podcast on Saturday, November 7, Nyoro questioned who would determine fuel prices under the proposed arrangement. He argued that Kenya could be forced to buy petroleum products from the refinery even when global market prices are lower.

Nyoro said Kenya consumes about 450 million litres of petrol and diesel, providing the proposed refinery with a ready market. However, he warned that guaranteeing the refinery access to the Kenyan market could weaken competition and give one supplier significant influence over fuel prices.

The legislator gave an example of a situation where international petroleum prices could fall to Ksh100 while Dangote’s products were sold at Ksh140. He argued that Kenya could still be required to purchase from the refinery if the agreement restricts alternative imports.

Nyoro also compared the situation to Dangote’s dominance in Nigeria’s cement industry. He claimed the businessman initially attracted customers by offering cement at significantly lower prices, before competitors were pushed out and prices later increased.

The MP therefore urged the government to make the agreement with Dangote public, saying Kenyans needed to understand the conditions attached to the investment.

He particularly questioned provisions that could limit petroleum imports, arguing that Kenya should retain the freedom to take advantage of lower prices in the global market.

Nyoro maintained that the proposed refinery should not be presented as an automatic solution to high fuel prices without first examining the commercial terms of the project.

His remarks come amid growing public debate over the planned refinery and whether it will deliver cheaper and more reliable fuel supplies to Kenya.

The project has been promoted as a major investment that could strengthen the country’s petroleum sector, but Nyoro’s criticism has intensified calls for greater transparency over the agreement and its potential impact on consumers.

Link; https://peopledaily.digital/business/ndindi-nyoro-warns-dangotes-lamu-refinery-could-make-fuel-more-expensive-than-it-is-now

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