LAMU, Kenya—Dangote Group Chairman and Nigerian billionaire Aliko Dangote has expressed confidence that the planned KSh2 trillion Lamu oil refinery will proceed despite a court order temporarily restricting activities on the land earmarked for the project.
Speaking at an investor event in Nairobi, Dangote said legal challenges were common when major projects were introduced in Africa, signalling that his group was prepared to face opposition to the development.
His remarks came hours after the Malindi Environment and Land Court ordered parties to maintain the status quo on the land until October 14, when a case challenging the project is scheduled for hearing.
The case was filed by 133 residents of Chandavai, Lamu, who claim the land is ancestral property where their families have lived and farmed for generations.
Dangote Group has maintained that the order has not halted plans for the refinery’s groundbreaking ceremony scheduled for Wednesday, September 30, although activities at the site could be affected depending on the interpretation and implementation of the court directive.
The proposed refinery is expected to cost between US$15 billion and US$16 billion and is targeted for completion by 2030.
The project is modelled partly on Dangote’s 700,000-barrel-per-day refinery in Lagos, which has been positioned as a major step towards reducing Nigeria’s dependence on imported petroleum products.
President William Ruto has backed the Lamu refinery, saying the project could strengthen Kenya’s fuel security, support industrialisation and create about 60,000 jobs.
Dangote has also said the refinery project will feature a major power-generation component, with the facility expected to produce about 1,000 megawatts, part of which could potentially be supplied to Kenya’s national grid.
For Kenya, the project remains one of the most ambitious proposed investments in the energy sector, but its progress now faces a legal challenge over ownership and use of the land identified for the development.
