NAIROBI, Oct 2 – Nigerian industrialist Aliko Dangote’s proposed $16 billion refinery in Kenya is facing a new legal challenge, with the Consumers Federation of Kenya (COFEK) seeking disclosure of key details surrounding the government’s proposed participation in the project.
COFEK has filed a petition with Kenya’s Public Private Partnerships Petition Committee, asking for information on the approval process, proposed public equity, land arrangements and other government commitments associated with the planned 700,000-barrel-per-day refinery in Lamu.
The consumer organisation is seeking details including the vehicle through which the Kenyan government would acquire its proposed stake, the class of shares involved and the terms under which the investment would be funded. Reports put Kenya’s proposed 10% interest at approximately $500 million, or about KSh65 billion.
COFEK is also seeking documentation showing how the project was approved, which procurement route was used, whether feasibility and financial assessments were conducted, and whether there was adequate public participation.
The petition further raises questions about the use and valuation of public land for the project and whether the government has agreed to additional forms of support, including potential offtake arrangements or other commitments that could create future public liabilities.
Second Legal Challenge
The petition represents a separate legal hurdle for the refinery after 133 residents of Chandavai in Lamu County filed a case challenging the use of land earmarked for the project, claiming it forms part of their ancestral heritage.
The Malindi Environment and Land Court has ordered the parties to maintain the existing status quo on the disputed parcel until a hearing scheduled for October 14, 2026.
The land dispute did not prevent the planned groundbreaking ceremony on September 30. Dangote Group said the court order would not stop the launch, although it could affect some activities at the project site.
At the groundbreaking, Dangote expressed confidence that the refinery would proceed despite the legal challenges, saying: “Anybody who wants to cause trouble, we are ready.”
$16 Billion Refinery
The Lamu refinery is designed to process 700,000 barrels of crude oil per day and is scheduled for completion in 2030. The project is being developed as a regional energy infrastructure investment and is intended to supply refined petroleum products to Kenya and other East African markets.
Dangote is seeking to replicate the scale of his group’s Nigerian refinery in East Africa. He has offered regional governments a combined 30% equity stake in the Kenyan project.
Kenya’s proposed participation has become a particular focus of COFEK’s petition because the organisation is seeking clarity over how the public investment would be structured and financed. The group has also questioned the status of reported budget allocations and whether funds have been budgeted, committed or disbursed.
The legal and regulatory questions come shortly after the project formally moved into its construction phase, placing greater attention on the terms governing public participation, land use and government support for one of Kenya’s largest proposed industrial investments.
