Dangote Group’s plan to establish a 700,000-barrel-per-day refinery in Kenya has encountered a legal challenge just as preparations intensify for the project’s groundbreaking ceremony in Lamu County.
The proposed refinery, estimated to cost between $15 billion and $16 billion, is being promoted as a major industrial investment that could create jobs, expand technical expertise and strengthen Kenya’s position in the East African energy market. Completion is targeted for 2030.
Kenyan President William Ruto has backed the project and said his administration was accelerating the necessary administrative processes. Ruto spoke after visiting the Dangote refinery in Lagos on Friday ahead of the planned September 30 groundbreaking in Lamu.
However, the development has been challenged by 133 residents of Chandavai, who have taken the matter before the Malindi Environment and Land Court. The residents are contesting the proposed use of the land and alleging that the project could result in the displacement of residents and destruction of their properties.
According to Sahara Reporters, citing Bloomberg, the court directed that the existing situation at the disputed site be maintained pending further proceedings. The order, issued on September 25 by Justice Jane Onyango, is expected to remain in effect as the court considers the residents’ claims, with further directions scheduled for October 14.
The petitioners have also questioned the project’s compliance with environmental requirements and Kenya’s constitutional provisions on public participation. Their lawyer, George Wakahiu, told Bloomberg that the order means construction activities cannot commence at the site before the October 14 hearing.
Dangote Group, however, has maintained that the court directive does not prevent the scheduled groundbreaking ceremony from taking place. Reuters reported that the company said activities at the site could be affected by the order, which requires the parties to refrain from activities pending the hearing.
Speaking at an investor event in Nairobi on Tuesday, Aliko Dangote also expressed confidence that the refinery project would proceed despite the legal challenge. He said the group was prepared to deal with opposition to the development.
The planned refinery is expected to mirror the 700,000-barrel-per-day capacity of Dangote’s facility in Lekki, Nigeria, which has begun supplying petroleum products to domestic and international markets.
Kenyan authorities have said the land for the Lamu project has been secured and that remaining administrative issues are being addressed. The refinery is expected to draw on the experience of Dangote’s Nigerian facility as the group seeks to establish another large-scale refining operation on the African continent.
