NAIROBI, Sept 29 – Dangote Group said the groundbreaking ceremony for its planned 700,000-barrel-per-day refinery in Lamu, Kenya, will proceed despite a court order concerning land earmarked for the project, although some site activities could be affected.
The Malindi Environment and Land Court ordered parties to maintain the existing status quo on the disputed land until an inter partes hearing scheduled for October 14. The order followed a case brought by 133 residents of Chandavai in Lamu County, who say the land forms part of their ancestral heritage and has been occupied and cultivated by their families for generations.
Dangote said the court had not ordered the cancellation of the groundbreaking ceremony. “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 activities until the case is heard on 14th October,” the company said.
The court declined to grant the residents’ request to stop the planned groundbreaking and wider development of the refinery, while directing respondents to file their responses before the October 14 hearing.
The land dispute adds a legal issue to a project that Dangote plans to develop as a major refining hub on Kenya’s coast. The proposed refinery is expected to have capacity of 700,000 barrels per day, with Dangote estimating the investment at between $15 billion and $16 billion and targeting completion by 2030.
Lamu’s Role in Kenya’s Energy Plans
The refinery is intended to support Kenya’s ambitions to develop a larger petroleum industry around the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor.
Unlike Nigeria, where Dangote already operates a 700,000-barrel-per-day refinery near Lagos, Kenya has yet to begin commercial crude oil production. The country’s South Lokichar Basin in Turkana is being developed as its first commercial oil-producing region.
The availability of domestic crude could eventually become relevant to the Lamu refinery, although the facility is expected to require crude supplies from Kenya and other African producers.
The project also comes as Dangote continues to expand its refining footprint. The company has been using the development and contractors involved in its Lagos refinery as a basis for its planned expansion there, according to Chief Executive Officer David Bird.
Dangote recently launched an initial public offering for its Lagos refinery, marking what has been described as Africa’s largest share sale, with proceeds intended to support the expansion of the Nigerian refining complex.
Land Dispute Remains Before Court
The Chandavai residents say they have occupied and used portions of the disputed land for generations and are seeking recognition of their claimed land interests, as well as compensation and other protections.
The court’s interim order applies to LR No. 13061 in the Hindi/Manda Magogoni area and requires the status quo to be maintained until the October 14 hearing. The judge also directed that the respondents be served and given 14 days to respond.
The legal proceedings therefore remain ongoing, with the immediate court order affecting activities on the disputed parcel rather than halting the wider refinery project or its scheduled groundbreaking.
