HeadlinesBriefing favicon HeadlinesBriefing.com

Kenyan Court Blocks Dangote’s $16bn Refinery

Financial Times Companies •
×

A court in Kenya has blocked construction at Nigerian industrialist Aliko Dangote’s $16bn oil refinery project after residents claimed ancestral rights to the land in Lamu County. Judge Jane Onyango in Malindi ordered the status quo to be maintained until a further hearing on October 14. The refinery, planned by Africa’s richest man, aims to reduce east Africa’s dependence on imported refined fuel, especially after the Strait of Hormuz closure disrupted supply chains.

The Dangote Group said the ruling would not prevent a planned groundbreaking ceremony on Wednesday, with Dangote and Kenyan President William Ruto scheduled to attend. However, site activities may be affected in the short term as both parties are barred from carrying out work until the case is heard. The petition was filed by 133 residents of Chandavai in Lamu County, who allege forceful eviction, property damage, and lack of resettlement plans or environmental impact assessments.

Similar disputes have delayed other projects in Kenya, including rare earth mineral developments. Despite the legal hurdle, President Ruto affirmed during a visit to Dangote’s Lagos refinery that the Kenyan government remains “100 per cent” behind the cent” behind the expansion, calling it vital for industrial growth and an opportunity to elevate national industrial scale and human capital. Dangote’s Lagos refinery, already Africa’s largest, was valued at $49bn in a recent public offering and has become a key jet fuel supplier in Europe during the Gulf crisis.