Nigerian billionaire and industrialist Aliko Dangote has stated that he is prepared to face opposition to his proposed Sh2 trillion oil refinery in Lamu, Kenya. A group of 133 residents, led by Salim Tima Swale, has filed a case seeking to stop activities on part of the land earmarked for the refinery. Dangote, however, remains unfazed, saying that opposition to large-scale investments is not unusual in Africa.
Dangote recalled a similar dispute involving one of his projects in Senegal that eventually reached the Supreme Court. He expressed his readiness to deal with those seeking to disrupt the project, stating that his company is aware of those behind the efforts to challenge the investment. "We are not bothered, don’t worry, we know the people who are doing all these things," he said.
The planned refinery, estimated to cost about $16 billion (approximately Sh2 trillion), is expected to have a processing capacity of approximately 700,000 barrels per day. The facility is planned to process crude from Kenya’s Turkana oilfields as well as supplies from other parts of Africa. The government is positioning the project as a major investment in the country’s energy sector.
The groundbreaking ceremony for the refinery is set to take place on Wednesday, September 30, with President William Ruto expected to preside over the ceremony. Energy and Petroleum Cabinet Secretary Opiyo Wandayi confirmed that the ceremony will proceed as scheduled, despite the pending court case over part of the project land.
The court has issued temporary orders requiring parties to maintain the prevailing status quo on disputed portions of land in the Hindi/Manda Magogoni area of Lamu County. The petitioners, Swale and 132 other applicants, are seeking to stop activities on the contested land pending the hearing and determination of their application. Justice Jane Onyango certified the matter as urgent and directed that the prevailing status quo on L.R. No. 13061 be maintained until October 14, 2026.
The court orders temporarily bar clearing, excavation, fencing, demolition, construction, transfer, disposal, or other interference with the occupied portions of the disputed property. However, the court declined a separate request by the petitioners seeking orders to prevent the Office of the President, Dangote Industries, the Lamu County Government, and other respondents from proceeding with the September 30 groundbreaking ceremony.
The Lamu refinery project is a significant investment in Kenya's energy sector, with the potential to boost the country's economy. The project's implementation will be closely watched, as it faces opposition from some residents. Key aspects of the project include its expected processing capacity and the source of crude oil it will process.
Key points
- The Lamu refinery project is estimated to cost about $16 billion (approximately Sh2 trillion).
- The facility is planned to process crude from Kenya’s Turkana oilfields as well as supplies from other parts of Africa.
- The groundbreaking ceremony for the refinery is set to take place on Wednesday, September 30.
