Why Kenya’s High Court Paused Dangote’s Lamu Refinery Project

A Kenyan court has ordered parties involved in the proposed Dangote refinery in Lamu County to maintain the status quo on the disputed land pending further hearing of a legal challenge by local residents.

Justice Jane Onyango of the Malindi Environment and Land Court issued the order following a petition by 133 farmers and residents of Chandavai, who alleged that the proposed $16 billion refinery project could lead to forced eviction and the destruction of their properties.

The court’s order, issued on September 25 and made public on Monday, directs the parties to maintain the existing situation on the disputed land until October 14, when the matter is scheduled for further hearing.

The residents, through their lawyer, George Wakahiu, also alleged that the project had not complied with Kenya’s environmental requirements, including the need for an environmental impact assessment, and had not met constitutional requirements for public participation.

Wakahiu said the order meant that construction activities should not commence on the disputed site before the October 14 hearing.

However, Dangote Group said the ruling does not stop the planned groundbreaking ceremony scheduled for September 30, although activities at the site could be affected by the directive.

In a statement reported by Reuters, the company said the court had not halted the groundbreaking ceremony but noted that both parties were required to refrain from activities at the site pending the hearing.

The proposed refinery is designed to have a processing capacity of 700,000 barrels of crude oil per day and is expected to serve the East African market. Dangote Group is expected to hold a 70 per cent stake in the project, with regional governments holding the remaining interest.

The court dispute comes days after Kenyan President William Ruto visited the Dangote Petroleum Refinery in Lagos and said his administration was accelerating administrative processes for the Lamu project.

Ruto said land for the refinery had been secured and that his government was working to remove bureaucratic obstacles that could delay the project.

The Kenyan president described the refinery as a regional project expected to boost industrial activity, create employment and strengthen technical skills in East Africa.

Dangote has previously said the planned Kenyan facility would be larger than his existing refinery in Nigeria.