Dangote, Ruto to Break Ground on $16bn Kenya Refinery Despite Court Dispute
Nigerian billionaire Aliko Dangote and Kenyan President William Ruto are set to break ground on Wednesday on a $16 billion oil refinery in Lamu, designed to supply petroleum products to Kenya and other East African markets.
The planned refinery will have a capacity of about 700,000 barrels per day and is expected to be completed by 2030. Dangote says the project is intended to help Africa reduce its dependence on imported refined petroleum products. Regional governments have also been offered a combined 30% stake in the facility.
However, the project has faced a legal challenge from 133 residents of Chandavai in Lamu County, who claim ancestral rights to part of the land earmarked for the refinery. They argue that their families have occupied and used the land for generations and have raised concerns over compensation and resettlement.
Kenya’s Malindi Environment and Land Court ordered parties to maintain the existing status quo on the disputed parcel until a hearing scheduled for October 14. The order restricts activities including clearing, excavation, fencing and construction on the affected land. However, the court did not stop Wednesday’s groundbreaking ceremony.
Dangote said the ruling would not prevent the launch, although some activities at the site could be affected while the legal dispute continues. He also dismissed the opposition as something his group was prepared to deal with, telling those seeking to stop the project through the courts: “If you want to go to court to stop the Lamu Refinery, go ahead; we are ready for you.”
The project is being positioned by the Kenyan government as a major industrial investment that could expand refining capacity, create jobs and reduce the region’s reliance on imported fuel.
