Ndindi Nyoro Warns Dangote Lamu Refinery Could Raise Fuel Prices in Kenya

Kiharu MP Ndindi Nyoro has cast doubt on the claim that Nigerian billionaire Aliko Dangote's proposed refinery in Lamu will bring cheaper fuel to Kenya. 

Speaking on Dr King'ori's YouTube podcast on Saturday, November 7, 2026, he argued that the deal could leave Kenyans paying more at the pump.

Nyoro has repeatedly asked the government to make the proposed Dangote-Kenya petroleum deal public. He says the terms need close scrutiny. In particular, he points to a clause that would restrict Kenya from importing refined products the refinery can produce. 

Under that arrangement, the country could only buy from other suppliers if a shortage arises. He believes this would give Dangote firm control over the market.

Nyoro asked who would set the price of fuel under the proposed plan. He warned that Kenya could lose the chance to benefit when global prices fall. Kenya uses about 450 million litres of petrol and diesel, which he says already guarantees the refinery a market. 

Even if Dangote sells above world prices, he argues, Kenya would be locked into paying them. He compared the arrangement to the Anglo Leasing scandal. He gave a hypothetical in which the market price is Ksh100 per litre while Dangote sells at Ksh140.

To back his concerns, Nyoro pointed to Nigeria's cement industry. He claimed Dangote entered that market by selling cement at about Ksh650, well below prevailing prices. 

Once rivals were pushed out, he said, prices rose. Nyoro noted that Nigerians still pay around Ksh1,400 for cement, despite the country being a major producer. He warned that Kenya's fuel sector could follow the same path if one supplier gains control.

Nyoro called the argument that the refinery will automatically lower pump prices naive. He also blamed the government for weak negotiations. 

In his view, limiting imports from other suppliers would weaken Kenya's bargaining power, especially when global fuel prices fall.

The debate over the East Africa Dangote Petroleum Oil Lamu Refinery continues. Whether it delivers cheaper fuel for motorists will depend on the final terms of the deal.