- Aliko Dangote says legal challenges will not deter his plans for the proposed Lamu refinery.
- The KSh2 trillion project is facing a land dispute involving residents of Chandavai.
- The court has directed parties to maintain the status quo on the disputed parcel until October 14.
- Dangote says the project could generate significant employment and stimulate wider economic activity.
- President William Ruto has publicly backed the investment and linked the dispute to concerns over attempts to influence ownership of the project.
Aliko Dangote has dismissed concerns that the ongoing court dispute could derail his plans for a major oil refinery in Lamu, saying he is prepared to face the legal challenge surrounding the project.
The Nigerian billionaire spoke in Nairobi on Tuesday, September 29, as questions continued to emerge over the proposed KSh2 trillion investment. His comments came a day before the planned groundbreaking ceremony in Lamu.
A Malindi Environment and Land Court has ordered parties to maintain the status quo on a disputed parcel linked to the project until October 14. The court did not grant an application seeking to stop the planned groundbreaking, meaning the launch can proceed while the wider land dispute remains before the court.
Dangote Says Legal Challenges Are Not New
Dangote said he has encountered similar legal obstacles while establishing businesses in other African countries.
He pointed to an earlier dispute involving one of his factories in Senegal, where he said the project was stopped for about a year. According to the businessman, his company pursued the matter through the country’s legal system before obtaining a favourable Supreme Court decision.
Dangote said the situation in Lamu was therefore not something that would cause him to abandon the investment. He indicated that his business group was prepared to defend its interests through the available legal channels.
The proposed refinery is expected to become a major industrial project on Kenya’s coast. The facility is planned to have a capacity of 700,000 barrels per day and is intended to serve Kenya and other markets in the wider East African region.
Project Expected to Create Thousands of Jobs
Dangote also highlighted the potential economic impact of the refinery beyond oil production.
He said the project would require a large workforce during construction, with more than 60,000 people expected to be needed at its peak. He argued that the salaries paid to workers would also support other businesses as demand for food, accommodation, transport and other services grows around the project.
The proposed development is being presented by its backers as a major investment for Lamu and the wider region. The refinery is expected to take several years to complete and could reduce East Africa’s reliance on imported refined petroleum products once operational.
Dangote Defends Long-Term Future of Oil
The billionaire also rejected suggestions that investments in the oil industry could lose relevance as countries increasingly turn towards renewable energy.
Dangote argued that petroleum remains important because crude oil is used to manufacture thousands of different products beyond petrol and diesel. He questioned what would happen to those products if renewable energy reduced demand for conventional fuels.
His comments come as the Dangote Group continues to expand its energy interests in Africa, including the planned Kenyan refinery and its existing operations in Nigeria.
Land Dispute Remains Before Court
The legal challenge in Kenya was filed by 133 residents from Chandavai in Lamu County.
The residents have raised concerns over land they say their families have occupied and used for generations. Their case challenges aspects of the proposed development and seeks protection of their claimed land interests, with issues including compensation and resettlement forming part of the dispute.
The court has directed that the status quo on the disputed parcel, identified as LR No. 13061 in the Hindi/Manda Magogoni area, be maintained until the matter is heard on October 14. The judge also directed the respondents to file their responses within 14 days.
The legal proceedings therefore remain separate from the planned groundbreaking ceremony. Energy and Petroleum Cabinet Secretary Opiyo Wandayi has also said the government intends to proceed with the launch as planned.
Ruto Raises Claims Over Investment Dispute
President William Ruto has also weighed in on the controversy surrounding the refinery.
Ruto previously alleged that some individuals had sought to pressure Dangote into giving them a stake in the project in exchange for supporting court cases against the investment. Those claims have been presented by the President and should be distinguished from the land-related issues currently before the court.
The President has repeatedly described the refinery as a major opportunity for Kenya’s industrial and economic development. He has also said the government would not allow investment opportunities to be undermined by demands for private benefits.
The court proceedings will now determine the outstanding issues concerning the disputed land while preparations for the refinery’s formal launch continue.
