Refinery

Dangote Group has expressed confidence that its planned 700,000-barrel-per-day refinery in Kenya will proceed as scheduled despite a court order arising from a land ownership dispute.

The company said the ruling by the Malindi Environment and Land Court does not prevent Wednesday’s groundbreaking ceremony for the multi-billion-dollar project, although it acknowledged that some activities at the proposed site could be affected until the case is heard.

The court directed that the status quo be maintained on the disputed land pending the hearing of a suit fixed for October 14, 2026.

Advertisement

The legal action was instituted by 133 residents of Chandavai in Lamu County, who claimed the land designated for the refinery belongs to their communities and forms part of their ancestral heritage.

Refinery

Responding to the development via a statement on Tuesday, Dangote Group said the court had not stopped the official launch of the project.

It, however, noted that both parties were expected to refrain from activities on the disputed land until the matter is determined by the court.

Speaking at an investor forum in Nairobi, the President of Dangote Group, Aliko Dangote, dismissed concerns that the legal challenge could derail the project.

He described such disputes as common in large-scale infrastructure investments across Africa and maintained that the company remained committed to delivering the refinery.

Dangote said the company was prepared to address any legal issues while continuing plans to develop the facility.

Dangote Foundation targets two million women for refinery share ownership

The proposed refinery in Lamu is designed to replicate the success of the 700,000-barrel-per-day Dangote refinery in Lagos, which has transformed Nigeria from a major importer of refined petroleum products into a growing exporter.

Unlike Nigeria, Kenya does not currently produce commercial quantities of crude oil, but the refinery is expected to strengthen East Africa’s energy security and support regional industrialisation.

Dangote has estimated the project will cost between $15 billion and $16 billion, with completion expected by 2030.

The planned investment follows the recent launch of the Dangote Refinery Initial Public Offering (IPO), one of the largest share sales ever undertaken on the African continent.

Advertisement