A Kenyan court has issued an interim order halting activities at the proposed Dangote refinery site in Lamu County due to a land dispute. The order was issued by the Malindi Environment and Land Court following a petition filed by 133 residents of Chandavai. The residents are challenging the use of the land earmarked for the multibillion-dollar refinery project. The court directed that the status quo on Land Reference No. 13061 be maintained until October 14.
The petitioners, led by Salim Tima Swale and 132 others, contend that their interests in the land extend beyond formal registration and are based on long-standing occupation, possession, cultivation, and development. They claim that their families have occupied, cultivated, and developed portions of the land for many years. The residents have also raised concerns about compensation and resettlement, alleging inadequate arrangements for families that could be affected by the development.
The proposed Dangote refinery is expected to have a processing capacity of about 700,000 barrels of crude oil per day and is being developed as one of the major energy and industrial projects planned for East Africa. The estimated investment is about $16 billion, although Kenyan sources have also valued the project at approximately KSh2 trillion or more. The facility is expected to be located close to Lamu Port and is being promoted as a project that could strengthen Kenya's position in regional petroleum supply.
Despite the court order, Dangote Group said the ruling had not halted the planned groundbreaking ceremony scheduled for September 30. In a statement, the company said the court had not stopped the ceremony but acknowledged that activities at the project site could be affected by the requirement that the parties maintain the existing situation until the October 14 hearing. Kenya's Energy and Petroleum Cabinet Secretary, Opiyo Wandayi, also said on Tuesday that the groundbreaking would proceed as planned.
Preparations for the project have continued in recent days, including the arrival of heavy machinery at Lamu Port. A vessel carrying about 2,930 metric tonnes of equipment arrived at the port on September 26. The equipment was brought into the country as preparations intensified for the planned construction and groundbreaking activities. The arrival of the machinery had reinforced expectations that physical work on the project would soon begin.
Dangote Group Chairman Aliko Dangote addressed the legal challenge on Tuesday during an engagement with Kenyan and East African institutional investors in Nairobi. Dangote described the dispute as a relatively minor issue and said legal challenges were not unusual when major projects were undertaken across Africa. He compared the situation with previous legal challenges encountered by his businesses elsewhere on the continent.
The court case highlights concerns over how large-scale infrastructure projects affect communities occupying land earmarked for development. The residents' legal challenge has brought questions about compensation, resettlement, land ownership, and environmental procedures into the public discussion surrounding the refinery. The case will now return to the Malindi Environment and Land Court on October 14, when further directions are expected.
Key points
- A Kenyan court has issued an interim order halting activities at the proposed Dangote refinery site in Lamu County due to a land dispute.
- The proposed Dangote refinery is expected to have a processing capacity of about 700,000 barrels of crude oil per day and is being developed as one of the major energy and industrial projects planned for East Africa.
- Despite the court order, Dangote Group said the ruling had not halted the planned groundbreaking ceremony scheduled for September 30.
