Court stops construction of Dangote’s $16bn Kenya refinery

•“We know those behind it, we’ll face them” — Dangote

A Kenyan court has stopped construction activities on Dangote’s proposed $16 billion refinery in Lamu County following a petition by farmers and residents challenging the project.

The Malindi Environment and Land Court ordered parties to maintain the existing situation at the site pending further proceedings, creating uncertainty around the planned development.

Justice Jane Onyango issued the order on Friday after 133 residents of Chandavai, Lamu County, approached the court over the proposed refinery.

The court is expected to give further directions on the case on October 14.

George Wakahiu, lawyer to the petitioners, said the order prevents construction from commencing before the next court session.

The residents, who identified themselves as farmers and landowners, alleged that the project could violate their property rights and affect their livelihoods.

They claimed the development could result in the forceful eviction of residents from their land and the destruction of properties.

The petitioners also alleged that no resettlement plan had been provided for affected residents.

They further challenged the project on environmental grounds, arguing that Dangote and the Kenyan authorities had not complied with Kenya’s requirement for a mandatory environmental impact assessment before implementing a major project.

The residents also questioned whether the required public participation had taken place, citing provisions of Kenya’s constitution.

Dangote vows to confront opponents

Reacting to the court order, President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, described the development as a familiar challenge for his group in Africa.

Dangote said he was not worried about the legal challenge and insisted that the company would confront attempts to frustrate its investments.

“I’m sure some of you must have seen it. One court has given an order that we shouldn’t do any construction. I said, no, no, this is normal for us in Africa, you know,” he said.

The businessman recalled a previous dispute involving one of his group’s factories in Senegal, where he said the facility remained closed for about a year before the company secured a Supreme Court judgment.

“We don’t care. We don’t care. In fact, this is even small. In Senegal, it’s not even court. We went, they stopped even our factory for one year. We went up to the Supreme Court to get a judgement,” Dangote said.

“So anybody who wants to cause trouble, we are ready for them.”

He also expressed confidence that the company knew those behind what he described as efforts to frustrate the project.

“No, no, brother, don’t worry. We know who are the people doing all these things, so we’ll face them,” he added.

Despite the court order, Dangote Group said the planned groundbreaking ceremony would not be affected at this stage.

In a statement reported by Reuters, the company explained that the court had not specifically stopped the ceremony scheduled for Wednesday, although activities at the project site could be affected.

“The court has not halted the groundbreaking ceremony of the refinery at this stage,” the company said.

“However, activities at the site may be affected by the ruling, as both parties are required not to carry out activities until the case is heard on 14th October.”

The proposed refinery is planned as a 700,000-barrel-per-day facility in Lamu County.

The project forms part of the wider Lamu Port-South Sudan-Ethiopia transport corridor, a multibillion-dollar infrastructure programme involving roads, railways, pipelines, airports and a power plant.

Ruto backs $16bn project

The court action came shortly after Kenyan President William Ruto visited the Dangote Petroleum Refinery in Lekki, Lagos, where he discussed the proposed Kenyan facility.

Ruto had said his administration was fast-tracking the administrative processes required to move the project forward.

He disclosed that the Kenyan government had secured the land for the refinery and was working to address other requirements to remove bureaucratic delays.

The Kenyan president described the proposed facility as a regional project that could increase industrial activity, create jobs and strengthen technical skills across East Africa.

Dangote had said the proposed Kenyan refinery would have a capacity of 700,000 barrels per day, making it larger than his existing 650,000-barrel-per-day refinery in Lagos.

The facility is expected to reduce East Africa’s dependence on imported refined petroleum products if completed.

However, the court’s October 14 proceedings will determine the next stage of the project following the residents’ legal challenge.