Kenyan Court Lifts Restriction on Dangote’s $17bn Refinery Project

By Adedapo Adesanya

A Kenyan court has lifted an earlier restriction on the development of Mr Aliko Dangote’s proposed $17 billion oil refinery in the Lamu archipelago, allowing the project to proceed amid an ongoing legal dispute over land ownership and environmental concerns.

The ruling was delivered on Wednesday, October 14, 2026, by High Court Judge Jane Onyango during proceedings in Malindi, following a petition by 133 residents who challenged the proposed 700,000-barrel-per-day refinery.

The residents alleged that the project threatened their property rights and that the developers had failed to demonstrate compliance with environmental regulations.

The court lifted the restriction after identifying an error in the land parcel referenced in the petition. Justice Onyango said the applicants had cited the wrong parcel and permitted them to amend their filing to reflect the correct property.

The court adjourned the matter until November 24, 2026, for the hearing of the amended petition, while allowing additional interested parties to join the proceedings.

Lawyer George Wakahiu told the court that about 700 other residents had indicated their intention to join the lawsuit, potentially increasing the number of petitioners.

The applicants had argued that Kenyan law requires environmental impact assessments and public consultations before major infrastructure projects can proceed, particularly in environmentally sensitive areas such as Lamu, which is home to a UNESCO World Heritage site.

The latest ruling follows an interim order issued by the Malindi Environment and Land Court on September 25, directing parties involved in the land dispute to maintain the existing conditions on the contested property pending further proceedings.

Dangote Group had maintained that the earlier order did not amount to a complete suspension of the project, insisting that preparations would continue within the limits of the court’s directive.

“The court has not halted the groundbreaking ceremony of the refinery at this stage,” the company said in a statement.

The ruling also comes two days after Kenyan parliamentary leaders expressed support for the Dangote East Africa Petroleum Refinery and Petrochemicals project and pledged to back its proposed initial public offering, according to a statement issued by Dangote Group on October 12.