Land Dispute Casts Uncertainty Over Dangote’s Kenya Refinery Project
A land dispute involving 133 residents of Chandavai has cast uncertainty over activities linked to Dangote Group’s proposed 700,000-barrel-per-day refinery in Lamu, Kenya, after a court ordered parties to maintain the status quo on the disputed land.
The Malindi Environment and Land Court issued the order on Tuesday, a day before the planned groundbreaking ceremony, following a legal challenge by residents who claim the land is ancestral property occupied and used by their families for generations.
The court directed all parties to refrain from activities on the disputed parcel pending further proceedings scheduled for October 14.
However, the order did not halt the planned groundbreaking ceremony scheduled for Wednesday.
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Dangote Group said the ceremony would proceed, although activities at the project site could be affected by the court directive.
“The court has not halted the groundbreaking ceremony of the refinery at this stage. However, activities at the site may be affected by the ruling as both parties are required not to carry activities until the case is heard on 14th October,” the company said.
The residents are challenging the use of the land for the multibillion-dollar project, alleging that their families have occupied, cultivated and developed parts of the area for years.
They claim that preparations for the refinery have affected homes, crops, trees and other property on the land. They are also challenging aspects of the compulsory acquisition process, including whether affected occupants were properly identified and compensated.
The proposed refinery is estimated to cost between $15 billion and $16 billion and is expected to process up to 700,000 barrels of crude oil daily.
The project forms part of Kenya’s plan to develop Lamu into an energy and logistics hub, with the refinery expected to process crude from Kenya and other African producers.
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The legal dispute comes as preparations for the project continue, with about 2,930 metric tonnes of refinery equipment delivered to Lamu Port this week.
Kenyan President William Ruto is expected to attend the September 30 groundbreaking ceremony despite the pending court case.
The court is scheduled to hear the dispute on October 14, when the respondents will have an opportunity to respond to the residents’ claims.
