Dangote’s $16bn Kenya Refinery Faces Setback as Court Halts Site Activities
- Kenyan court orders a temporary pause at Dangote’s proposed $16 billion Lamu refinery site amid land and environmental disputes
- Residents allege evictions, property damage and failures to meet environmental assessment and public participation requirements
- The 700,000-barrel-a-day project faces an October 14 court hearing, while Dangote Group says its planned groundbreaking has not been cancelled
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
A Kenyan court has ordered a temporary halt to activities at the site of Aliko Dangote’s proposed $16 billion oil refinery in Lamu County, throwing uncertainty over the early stages of the massive East African project.
The Malindi Environment and Land Court ordered parties involved in the dispute to maintain the “status quo” until the case returns for further directions on October 14.
Source: UGC
The ruling followed a lawsuit filed by farmers and residents of Chandavai in Lamu County, who raised concerns about land ownership, alleged evictions and environmental requirements connected with the proposed refinery.
According to Bloomberg, Judge Jane Onyango issued the order on September 25.
Residents challenge refinery project
The petitioners alleged that residents had been forcibly removed from their land and that properties were damaged without an adequate resettlement plan.
They also argued that the project had not complied with requirements for an environmental impact assessment and public participation before a major development could proceed.
George Wakahiu, a lawyer representing the petitioners, told Bloomberg that the ruling meant construction work should not begin at the site before the October 14 hearing.
The legal challenge represents an early hurdle for a project expected to become one of Africa’s biggest oil refineries.
Dangote reacts to court order
Dangote Group, however, said the ruling had not cancelled the refinery’s planned groundbreaking ceremony.
“The court has not halted the groundbreaking ceremony of the refinery at this stage,” the company said in a statement reported by Reuters.
It acknowledged that activities at the site could be affected because both parties are required to refrain from activities until the case is heard on October 14.
The distinction could prove important ahead of the groundbreaking ceremony previously planned for September 30.
Refinery planned for 700,000 barrels daily
The proposed Lamu refinery is expected to process about 700,000 barrels of crude oil per day, potentially making it larger than Dangote’s existing refinery in Lagos, Reuters reported.
Kenyan President William Ruto had said his government was fast-tracking administrative processes surrounding the investment to avoid unnecessary delays.
Source: Getty Images
Ruto made the remarks during a visit to the Dangote Petroleum Refinery in Lekki, Lagos, saying Kenya had secured land for the project and was working to remove bureaucratic obstacles.
He described the refinery as a regional investment capable of supporting industries, creating jobs and developing technical skills across East Africa.
The October 14 court proceedings will now be closely watched for clarity on whether activities at the proposed refinery site can move forward.
Dangote’s 700,000bpd Kenya refinery faces setback
Legit.ng earlier reported that Aliko Dangote’s plan to build a 700,000-barrel-per-day refinery in Lamu, Kenya, is facing fresh challenges, particularly over crude supply in a country that currently has no commercial-scale oil production.
The proposed project comes less than three years after Dangote launched Africa’s largest refinery in Nigeria, despite difficulties including rising construction costs, challenging terrain and poor infrastructure.
Source: Legit.ng
