Nigerian billionaire and President of Dangote Group, Aliko Dangote, remains confident that his planned $16bn oil refinery in Kenya will overcome legal challenges arising from a dispute over land earmarked for the project. The dispute involves a parcel of land in Lamu County, where 133 residents claim their families have occupied, cultivated, and used the land for generations. Dangote described legal challenges as part of doing business in Africa, stating that his company is prepared to address opposition to the project.
A Kenyan court recently issued an interim order requiring parties to maintain the existing situation on the disputed land until October 14. The court order followed a lawsuit filed by the 133 residents of Chandavai, who are challenging the proposed development over claims that their land rights have not been adequately recognised. The residents allege that the project threatens their homes, farms, and livelihoods and that crops, trees, and other property were damaged during earlier activities on the land.
The proposed refinery is designed to process 700,000 barrels of crude oil per day, making it one of the major refining projects planned for the African continent. Dangote has estimated the project's cost at approximately $16bn, with completion targeted for 2030. The facility is intended to serve Kenya and the wider East African market, where countries depend significantly on imported refined petroleum products.
The project is linked to broader plans to develop Lamu as an energy, transport, and logistics hub. However, its implementation will depend on several factors, including financing, infrastructure, crude oil supply arrangements, environmental requirements, and the resolution of outstanding legal issues. Dangote Group has maintained its commitment to the project as the legal proceedings continue.
The land dispute has placed questions of customary land rights, compulsory acquisition, compensation, and resettlement at the centre of the project's development. The residents maintain that they want their land interests recognised and addressed before the refinery proceeds, while Dangote Group remains committed to advancing the investment.
Dangote made the comments at an investor event in Nairobi, Kenya, where he stated that his company was prepared to address opposition to the project. The company has said that the court order would not prevent the planned groundbreaking ceremony scheduled for September 30, although activities at the project site could be affected.
The court is expected to hear arguments from the parties on October 14, 2026, as the dispute over the affected land continues. The project's proponents say it could strengthen regional fuel supply, support industrial development, and create employment opportunities.
Key points
- Aliko Dangote's $16bn Kenyan oil refinery faces a land dispute with 133 residents.
- The project is designed to process 700,000 barrels of crude oil per day.
- The court is expected to hear arguments from the parties on October 14, 2026.
