Dangote Pulls Out of Kenya: Corruption Scuttles $1.4B Cement Investment

Kenya Misses Out on Dangote’s Multi-Billion Cement Expansion

Africa’s richest man, Nigerian tycoon Aliko Dangote, CEO of the Dangote Group, has operations across manufacturing, food processing, telecommunications, real estate, and banking. His cement business alone produces over 50 million tonnes annually and operates in more than 10 Sub-Saharan African countries, including Nigeria, South Africa, Senegal, Cameroon, Ethiopia, Zambia, Tanzania, Congo Brazzaville, Sierra Leone, Togo, and Ghana.

Despite Kenya’s growing economy, it has missed out on Dangote’s Pan-African expansion plans. Reports previously indicated that the Industrialization Ministry had approved Dangote to prospect for limestone in Kitui County, part of a $1.4 billion partnership with Chinese firm Sinoma International Engineering aimed at expanding Dangote Cement across Africa.

However, celebrated journalist Jeff Koinange revealed that Dangote abandoned the plan due to corrupt practices among Kenyan officials, who allegedly demanded kickbacks to facilitate the investment. Speaking in 2018 after attending Dangote’s daughter’s wedding, Koinange recalled Dangote saying:

“There are people in that place (Kenya) who put greed and personal interest ahead of national interest. I didn’t think Kenya would be more corrupt than Nigerians.”

Kenya’s missed opportunity highlights the challenges of foreign investment in Africa, especially when bureaucracy and corruption outweigh potential economic gains.