Kenyan Court Orders Status Quo on Dangote’s $16 Billion Lamu Refinery
A Kenyan court has ordered parties to maintain the status quo on land earmarked for Aliko Dangote’s proposed $16 billion oil refinery in Lamu County, following a legal challenge by 133 local residents.
The Malindi Environment and Land Court issued the order ahead of the planned September 30 groundbreaking ceremony, after residents of Chandavai challenged the development of the refinery on land they say their families have occupied and farmed for generations.
Justice Jane Onyango directed that the existing situation on the disputed parcel, identified as LR No. 13061, be maintained until the case is heard on October 14. The court did not, however, expressly issue an order cancelling or stopping the planned groundbreaking.
The residents argue that the project and related infrastructure development could displace them without adequate compensation or resettlement. They also allege that previous construction activity destroyed crops, trees and other property.
The petitioners have sued several government agencies, Dangote Industries and two contractors. They are seeking recognition of their land interests, proper valuation and compensation, as well as compliance with environmental and public-participation requirements.
The proposed refinery, valued at about $16 billion, is planned for Lamu and is expected to have a processing capacity of up to 700,000 barrels of crude oil per day. It forms part of Kenya’s broader plans to develop Lamu as an energy and logistics hub.
The court is expected to hear arguments from both sides on October 14, when the legal dispute over the land and the project’s development will receive further consideration.
