Keypoints:
- $16bn Lamu refinery formally launched
- 133 residents contest project land
- Land case returns October 14
THE groundbreaking for Aliko Dangote’s $16bn oil refinery has gone ahead in Kenya’s coastal Lamu County, even as a dispute over part of the land earmarked for the project remains before the courts.
President William Ruto joined Dangote and other African leaders on September 30 to launch the 700,000-barrel-per-day refinery, an investment that could significantly change how Kenya and its neighbours source refined petroleum products.
The ceremony marks another major step in a project that has moved quickly in recent months. Africa Briefing earlier reported that Dangote had settled on Lamu and begun engineering and site investigations as preparations gathered pace.
But behind the launch lies an unresolved land dispute involving 133 residents from Chandavai.
They say their families have occupied and used parts of LR No. 13061 for generations and should be recognised and compensated before development affects the land.
Court leaves launch untouched
The Malindi Environment and Land Court has ordered that the status quo on the disputed property be maintained until October 14, when the matter is due back before the court.
The order applies to occupied portions of LR No. 13061 while the case is pending.
It did not, however, stop the September 30 groundbreaking ceremony.
The dispute had already raised questions over whether the launch could proceed, with Africa Briefing reporting a day earlier that Dangote intended to keep the refinery launch on schedule despite the court case.
The residents say their families have farmed the land, grazed livestock and built homes, mosques and shrines there. They also say some relatives are buried on the property.
Although they do not hold formal title deeds, they argue that their long occupation, possession and customary use of the land give them interests that should be recognised during any acquisition and compensation process.
They also make clear in their court papers that they are not opposed to development.
Their argument is that development should not move ahead without first addressing the rights of people who have lived on and used the land for generations.
AEC backs Dangote project
The African Energy Chamber has strongly backed Dangote Industries, warning that prolonged legal disputes could delay an investment it considers important to East Africa’s energy security.
AEC Executive Chairman NJ Ayuk said questions around land ownership and compensation should be dealt with fairly and quickly, but argued that the refinery should not become trapped in years of litigation.
‘Africa cannot continue exporting its energy security and then acting surprised when conflicts thousands of kilometres away determine what our people pay for fuel,’ Ayuk said.
He added that communities in Lamu should have their rights respected while legitimate disputes are resolved.
The AEC went further in its statement, portraying opposition to major African energy projects as part of a wider pattern of pressure against infrastructure development.
It also suggested that some of that pressure was externally driven.
However, the chamber presented no evidence linking the 133 residents behind the current Lamu case to foreign organisations.
A huge bet on refining
The scale of the project explains why the dispute is attracting attention well beyond Lamu.
The refinery is expected to process about 700,000 barrels of crude oil each day and produce petrol, diesel and aviation fuel for Kenya and the wider East African market.
Just days before the groundbreaking, Dangote awarded Engineers India Ltd a contract worth more than $450m for consultancy and project-management work, a deal Africa Briefing described as one of the clearest signs yet that the Lamu refinery was moving towards execution.
Dangote has also opened the door to East African governments taking a combined stake of up to 30 percent in the project. Rwanda is among the countries considering participation, while Kenya has also discussed taking an equity position. Africa Briefing recently examined Rwanda’s interest in joining the $16bn refinery project.
The Lamu investment follows Dangote’s refining expansion in Nigeria and reflects a wider push to process more African crude on the continent rather than export raw materials and import finished petroleum products.
That model has already begun changing Nigeria’s position in regional fuel markets, with the Lagos refinery moving towards full capacity and supplying growing volumes of refined products beyond the domestic market.
For Kenya, the Lamu refinery is being promoted as a major industrial investment with the potential to strengthen fuel security, create jobs and deepen the country’s role in regional energy trade.
For the Chandavai families, the issue is more immediate: who has rights over the land and who should be compensated before construction moves ahead.
That question remains unresolved.
The refinery has now been formally launched, but the land dispute returns to the Malindi court on October 14.
