Aliko Dangote, Africa's richest man, faces a new setback in his bid to establish a Ksh.2 trillion oil refinery project in Lamu, Kenya. More than 130 residents of Chandavai in Lamu County have filed a lawsuit seeking to stop the project, claiming it threatens to displace them without a resettlement plan or compensation. The plaintiffs have sued several government agencies and Dangote Industries, alleging that the project will destroy their land, crops, and property.
The residents claim to have occupied, cultivated, and developed the land for generations, despite not holding formal title deeds. They argue that their families have historically used the land for farming and livestock keeping and have built homes, mosques, and shrines on it. Some family members are also buried on the disputed land. The plaintiffs contend that the land is community land under the stewardship of the Lamu County Government and that they have occupied it peacefully for generations without previous disputes over ownership.
According to the plaintiffs, government agents entered the disputed land in August 2024, destroying crops, trees, and other property without prior notice, consultation, or compensation. Local administrators informed them that the land had been acquired for the LAPSSET project and later allocated to the Ministry of Defence for infrastructure works. The residents claim they were instructed not to interfere with the works and were promised compensation for destroyed crops and other losses. Some families were forced to move into rented accommodation to make way for the developments.
The land dispute has taken on a new dimension with preparations for the proposed Dangote refinery in Lamu. Soil testing and other preparatory activities began in July 2026, and local administrators told the residents that the Dangote project would proceed alongside the LAPSSET and Manda Bay infrastructure developments. The plaintiffs allege that police officers, chiefs, and government agents cleared one of the disputed parcels in September 2026, telling them that the site would be used for a groundbreaking ceremony for the refinery.
The residents argue that the absence of registered title deeds does not extinguish their interests in the land or their entitlement to compensation. They rely on Article 40(4) of the Constitution and the compulsory acquisition provisions of the Land Act. The plaintiffs contend that persons actually occupying and using the land should be identified and recognised as persons with compensable interests, even where those interests are not reflected in the land register.
The plaintiffs accuse the defendants of failing to follow the statutory procedure governing compulsory acquisition, including issuing required notices, conducting surveys and valuations, and providing compensation before taking possession. They also allege that the authorities failed to adequately consult affected residents or provide meaningful opportunities for public participation. The residents claim that the alleged conduct violated several constitutional rights, including the right to property, fair administrative action, and access to information.
The case will likely have significant implications for the Dangote oil refinery project, which is expected to be officially launched on September 30. The project's success is crucial for Kenya's energy sector, but the residents' concerns about compensation and resettlement must be addressed. The court will need to consider the competing interests of the parties involved and determine whether the project can proceed without violating the rights of the affected residents.
Key points
- The lawsuit filed by Lamu residents seeks to stop the Dangote oil refinery project, citing concerns about land acquisition and compensation.
- The plaintiffs claim that the project threatens to displace them without a resettlement plan or compensation.
- The case has significant implications for Kenya's energy sector and the rights of affected residents.
