Nigerian businessman Aliko Dangote has reaffirmed his commitment to proceed with the planned $16 billion refinery project in Lamu, Kenya, despite a court order concerning the land earmarked for the development.
The proposed refinery, which is expected to have a processing capacity of 700,000 barrels of crude oil per day, is scheduled for a groundbreaking ceremony on Wednesday, September 30.
The Malindi Environment and Land Court issued an order requiring parties to maintain the existing status quo on the disputed land until October 14, when the case will be heard.
The case was brought by 133 residents of Chandavai in Lamu County, who claim the land is part of their ancestral heritage and has been occupied and cultivated by their families for generations.
The court order restricts activities that could alter the disputed site, including construction-related work, although it did not specifically stop the planned groundbreaking ceremony.
Dangote Group said the ruling could affect activities at the project site but would not prevent the groundbreaking from going ahead.
Speaking at an investor engagement event in Nairobi, Dangote expressed confidence that the legal challenge would not derail the project, saying his company was prepared to deal with the dispute.
The Lamu refinery is expected to cost between $15 billion and $16 billion and is targeted for completion by 2030. Dangote has said the facility will process crude from Kenya and other African producers and supply refined petroleum products to Kenya and the wider East African market.
The project is also expected to have a 1,000-megawatt power facility, with plans for part of the electricity generated to support Kenya’s power grid.
The land dispute has, however, introduced uncertainty over construction activities as the court considers the residents’ claims.
The residents are seeking recognition of their land rights and compensation, while raising concerns about the potential impact of the development on their homes, farms and livelihoods.
For now, the groundbreaking remains scheduled, while the court is expected to consider the substantive dispute on October 14.
Source: Arise News, with additional verification from Reuters and Kenyan reports.
