Dangote to Proceed With Kenya Refinery Groundbreaking Despite Court Order

By Adedapo Adesanya

The Dangote Group has said a Kenyan court order over a land rights dispute will not stop the groundbreaking ceremony for its planned 700,000 barrels-per-day refinery in Lamu, although some activities at the site may be affected.

The Malindi Environment and Land Court ordered parties to maintain the existing status quo on the disputed land until October 14, when the case will be heard.

The order, issued by Justice Jane Onyango on September 25 and made public on Monday, prevents clearing, excavation, fencing, construction and disposal of the land in the Hindi/Manda Magogoni area of Lamu County pending the hearing.

The case was filed by Salim Tima Swale and 132 other residents of Chandavai, who are challenging plans for the refinery.

The petitioners said they have occupied, cultivated and developed portions of the land for generations and described it as their ancestral heritage. They are seeking consideration of their interests in any compulsory acquisition process for the project. The court has certified the matter as urgent.

The groundbreaking is scheduled for this week.

In a statement, Dangote Group said the court had not halted the groundbreaking ceremony at this stage but acknowledged that activities at the site could be affected by the order.

“The court has not halted the groundbreaking ceremony of the refinery at this stage. However, activities at the site may be affected by the ruling as both parties are required not to carry out activities until the case is heard on 14th October,” the company said.

The Lamu refinery is expected to have a capacity of 700,000 barrels per day, matching the capacity of Dangote’s refinery near Lagos, Nigeria.

Dangote has estimated the cost of the Kenyan project at between $15 billion and $16 billion and is targeting completion by 2030.

The project is expected to serve as a major refining hub for the region, although Kenya currently has no commercial crude oil production.

The development comes shortly after Dangote launched an initial public offering for its Lagos refinery, described as Africa’s biggest-ever share sale.

The Nigerian refinery has helped reduce the country’s dependence on imported petroleum products and has increasingly positioned Nigeria as a fuel exporter.