Kenyan Court Orders Halt To Activities At Dangote’s $16bn Refinery Site

A Kenyan court has ordered parties involved in the proposed $16 billion Dangote oil refinery in Lamu County to maintain the status quo on the disputed land, following a legal challenge by local residents.

Gatekeepers News reports that Justice Jane Onyango of the Malindi Environment and Land Court issued the order after 133 residents of Chandavai challenged the use of the land for the planned refinery. The case is scheduled for further hearing on October 14. 

The residents claim that the land earmarked for the project is ancestral property that their families have occupied and used for generations. They said parts of the area contain homes, farms, mosques, shrines and family graves.

They are seeking recognition of their land interests, compensation and adequate resettlement arrangements, alleging that the project could lead to displacement and destruction of their property. They also raised concerns about environmental assessments and public participation requirements. 

The court did not issue a final order cancelling or stopping the refinery project. Instead, it directed that the existing situation on the disputed parcel be maintained pending the inter partes hearing on October 14. 

The development comes ahead of the planned September 30 groundbreaking ceremony for the refinery, which is expected to have a processing capacity of 700,000 barrels of crude oil per day. The facility is projected to become one of the largest refineries in East Africa and is intended to reduce the region’s dependence on imported refined petroleum products. 

Dangote Group said the court order would not stop the scheduled groundbreaking ceremony, although activities at the project site could be affected while the legal dispute is being considered. 

The proposed refinery is part of wider plans to develop Lamu as an energy and logistics hub. The project is expected to process crude from Kenya and other African producers and supply refined petroleum products to Kenya and neighbouring countries.