Wednesday, September 30, 2026
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Dangote’s $16bn Kenya refinery faces court dispute

A Kenyan land-rights case has created uncertainty around the planned 700,000-barrel-per-day refinery in Lamu.

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Nigeria’s Dangote Group is facing a legal challenge in Kenya over land earmarked for its proposed $15–16 billion refinery in Lamu County, East Africa.

A Kenyan Environment and Land Court ordered that the existing status of the disputed land be maintained until a further hearing scheduled for October 14, 2026. The case was brought by 133 residents of Chandavai, who claim ancestral rights to the land.

The residents have raised concerns about possible displacement, compensation and resettlement. They have also questioned whether the project complied with environmental assessment and public-participation requirements.

Despite the court order, Dangote Group said the ruling would not stop the planned groundbreaking ceremony, although some activities at the project site could be affected while the case is before the court. The company has expressed confidence that the project will proceed.

The planned refinery is expected to have a processing capacity of 700,000 barrels of crude oil per day, similar to Dangote’s refinery in Lagos. The company hopes to complete the Kenyan facility by 2030.

The project is intended to reduce East Africa’s dependence on imported refined petroleum products and supply fuel to Kenya and neighbouring countries. Dangote has offered regional governments a combined 30 per cent stake in the refinery, with Kenya and Rwanda among the countries that have expressed interest.

However, the project faces questions beyond the land dispute, including how it will secure sufficient crude oil. Kenya currently does not have commercial crude production, so Dangote has said the refinery would obtain crude from regional producers as well as international suppliers in the Middle East and the United States.

The Kenyan government has continued to support the project, which officials say could strengthen regional fuel supply, industrial development and employment.

The October 14 court proceedings are expected to provide further direction on the land dispute and could clarify the extent to which activities at the proposed refinery site can continue.

 

Telling African Stories One Voice at a time!

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