Kenyan Court Pauses Dangote’s $16bn Refinery Project After Local Residents’ Suit

A Kenyan court has ordered parties to maintain the status quo on land earmarked for Aliko Dangote’s proposed $16 billion refinery in Lamu County after 133 local residents challenged the project over alleged land and constitutional rights violations.

The order was issued by Justice Jane Onyango of the Malindi Environment and Land Court following an application filed by residents of the Chandavai/Magogoni area, who claim that their families have occupied and cultivated parts of the disputed land for generations. 

The residents are challenging the development of the refinery on land they say constitutes ancestral or community property. They allege that the acquisition process failed to adequately identify affected occupants, provide required notices, conduct proper valuation and ensure compensation before the project proceeds.

The court directed the parties to maintain the existing status quo pending an inter partes hearing scheduled for October 14, 2026. The ruling comes just days before the planned groundbreaking ceremony for the refinery, which is scheduled for September 30. 

The plaintiffs, through their legal representatives, argue that they have used the land for farming, livestock keeping and residential purposes for generations. They also say homes, religious structures, trees, crops and ancestral graves are located on portions of the disputed property.

The residents further allege that earlier government-related developments in the area resulted in the destruction of crops and other property and that some families were forced to relocate without what they consider adequate compensation or a resettlement plan. 

They are asking the court to protect their alleged property and constitutional rights and prevent further construction, excavation or other activities on the disputed land until their interests have been properly determined.

The proposed Dangote refinery is expected to have a processing capacity of about 700,000 barrels of crude oil per day and is being positioned as a major energy project for Kenya and the wider East African region. The project is expected to supply refined petroleum products to Kenya and neighbouring countries. 

The legal challenge is not the first concern raised over the proposed development. Environmental and civil society groups have previously called for greater attention to the project’s potential impact on Lamu’s coastal environment, local livelihoods and the community’s security situation. 

The court has not, at this stage, determined the substantive claims made by the residents or ruled that the refinery project itself is unlawful. The October 14 hearing is expected to give the respondents an opportunity to respond to the allegations.

The case therefore leaves the proposed refinery project facing a legal hurdle as stakeholders await further directions from the Kenyan court on the disputed land and the residents’ claims.


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