Dangote Group says the launch of its planned $16 billion refinery in Kenya will proceed despite a court order linked to a land dispute in Lamu County.
The company said the groundbreaking ceremony for the Dangote Kenya refinery will go ahead on Wednesday. However, some work at the site could be affected by the court restrictions.
The planned refinery would have capacity to process 700,000 barrels of oil per day. It is expected to supply Kenya and other East African markets.
Court order affects Dangote Kenya refinery site
The dispute involves 133 residents of Chandavai in Lamu County.
The residents say the contested land is ancestral property that their families have occupied and developed for generations.
According to Business Insider Africa, they say the area includes homes, farms, livestock areas, mosques, shrines and family graves.
The Malindi Environment and Land Court ordered all parties to maintain the existing status quo on the disputed land.
The order will remain in place until October 14, when the case is expected to be heard.
Dangote said the restrictions could affect some activities at the refinery site. However, the company said they would not prevent Wednesday’s groundbreaking ceremony.
Residents raise concerns over disputed land
The residents are seeking protection for the land while the legal dispute continues.
They have raised concerns about possible damage or displacement linked to the project.
The court’s order means activities that could change the existing situation on the contested land may be restricted before the October hearing.
The case therefore creates uncertainty around some early site work.
However, Dangote maintains that the wider refinery project is moving forward.
Dangote expands refining plans into East Africa
The Dangote Kenya refinery would mark a major expansion of the group’s refining business beyond Nigeria.
The planned facility in Lamu would have a processing capacity of 700,000 barrels per day.
Dangote intends the refinery to serve both Kenya and the wider East African market.
The company has also offered East African countries a combined 30% equity stake in the project.
David Ndii, an economic adviser to Kenyan President William Ruto, said Kenya could acquire a 10% stake.
That stake would be valued at about $500 million, according to Ndii.
Ethiopia and Rwanda show interest
Ethiopia and Rwanda have also expressed interest in participating in the Dangote Kenya refinery project, according to Ndii.
He said the total proposed investment from countries in the region would amount to about $1.5 billion.
The regional participation would represent 30% of the planned refinery.
The project is valued at approximately $16 billion.
If completed as planned, the refinery would give Dangote a major new refining operation in East Africa.
For now, the company says the groundbreaking will proceed while the land dispute continues through the Kenyan courts.