On September 30, 2026, President William Ruto and Aliko Dangote officially broke ground for the $16 billion Lamu refinery, marking the start of a project slated to process 700,000 barrels of oil daily. The groundbreaking ceremony took place despite ongoing court cases filed by over 200 residents challenging land ownership, resettlement, and compensation for the site.
Two lawsuits involving more than 200 residents have been filed in the Malindi Environment and Land Court, specifically case E129 of 2026 lodged by Salim Tima Swaleh and 132 other claimants. The case names Dangote Industries, the National Land Commission, and the LAPSSET Corridor Development Authority as respondents. The residents claim their families have farmed the disputed land for generations.
On September 25, 2026, Justice Jane Onyango issued an order directing the preservation of the status quo pending a hearing on October 14. However, the order did not expressly prohibit the ceremonial groundbreaking. The Dangote Group acknowledged the distinction, stating that while the ceremony proceeded, construction activities were subject to the court’s restrictions until the October hearing.
Residents allege that government and LAPSSET agents damaged crops and trees in August 2024 without notice or compensation. They also claim that their homes, grazing areas, mosques, shrines, and graves are located on the disputed land. While some residents expressed support for the refinery, they demanded fair compensation before substantive work began.
The residents’ petition also alleges the absence of a required environmental impact assessment and adequate resettlement arrangements. These claims remain contested and must be addressed through the relevant environmental and land-acquisition processes. Kenya’s Constitution, particularly Article 40, requires prompt, full, and just compensation for property acquisition.
President Ruto has accused opposition sponsors and brokers of obstructing the investment. However, officials stress that any fraud allegations must be investigated independently and cannot justify ignoring court orders or residents’ rights. Dangote has said the government has already handled compensation for a large portion of the site.
The Lamu refinery project has sparked controversy and concern among local residents, who are demanding fair compensation and transparent documentation of any payments made. The project's progression will depend on the resolution of the ongoing court cases and the addressing of the residents' concerns.
Key points
- The Lamu refinery project is a $16 billion investment slated to process 700,000 barrels of oil daily.
- Over 200 residents have filed court cases challenging land ownership, resettlement, and compensation for the site.
- The project's progression is contingent upon the resolution of the ongoing court cases and addressing the residents' concerns.
