Nigeria’s Dangote Group said a Kenyan court ruling over a disputed parcel of land will not stop the planned groundbreaking of its proposed oil refinery in Lamu, although some activities at the site could be affected.
The company said the groundbreaking ceremony for the planned 700,000 barrels per day refinery would proceed on Wednesday despite the legal dispute over the land on which the project is being developed.
The Malindi Environment and Land Court on Friday directed parties involved in the dispute to maintain the status quo on a parcel identified as LR No. 13061 in the Hindi, Manda and Magogoni area of Lamu County until Oct. 14, when the case is scheduled to be heard between the parties.
The court did not grant an application by residents seeking to stop the planned groundbreaking and wider development of the refinery.
More than 130 residents from Chandavai filed the case, arguing that their families have occupied and used the disputed land for generations. They say the land has been used for farming and livestock, and contains homes, mosques, shrines and family graves.
The residents are seeking recognition of their interests in the land, proper valuation and compensation before the government takes possession. They have also raised concerns about alleged damage to crops and property during earlier preparatory works.
Dangote Group has maintained that the court order does not halt the refinery project or prevent the scheduled groundbreaking. However, the company acknowledged that the status quo directive could affect some activities taking place on the disputed site.
The planned refinery is expected to have a processing capacity of 700,000 barrels of crude oil per day, making it one of the largest proposed refining projects in Africa. The Kenyan government has put the investment at about 2 trillion Kenyan shillings, while President William Ruto’s administration has said the project could create significant employment and support petroleum supply in Kenya and neighbouring countries.
The project is being developed in Lamu, a strategically important coastal area that is also home to other major infrastructure developments, including the Lamu Port and the Lamu Port South Sudan Ethiopia Transport corridor.
A ship carrying construction equipment for the refinery arrived at Lamu Port on Sept. 26, ahead of the planned groundbreaking ceremony.
The land dispute adds a legal dimension to the development of a project that Kenya views as part of efforts to strengthen its energy infrastructure and attract large scale investment.
For communities in Lamu, however, the case has brought questions about land rights, compensation, resettlement and the impact of major infrastructure projects on people with longstanding ties to the affected areas.
The court is expected to hear the matter on Oct. 14, when parties will present their respective positions on the disputed land and the future of activities on the site.
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