Dangote’s $16 Billion Kenya Refinery Faces Court Challenge Over Lamu Land

Aliko Dangote’s planned $16 billion oil refinery in Kenya has faced a legal challenge from more than 100 residents of Lamu County who are disputing the ownership and acquisition of land earmarked for the project.

The Malindi Environment and Land Court has ordered parties to maintain the existing status quo on the disputed parcel, LR No. 13061 in the Chandavai area of Lamu County, until the matter comes up for further hearing on October 14, 2026. The case was brought by 133 residents who say their families have lived on, farmed and grazed livestock on the land for generations. They also say the area contains homes, mosques, shrines and family graves.

The residents are challenging what they describe as the acquisition of their ancestral land without adequate notice, compensation or a clear resettlement plan. They have asked the court to protect their property and constitutional rights before further development takes place.

The petitioners allege that government and LAPSSET officials previously entered parts of the disputed land with bulldozers and destroyed crops and trees. They further claim that soil testing and other preparations connected to the refinery began in 2026 without the affected residents being properly consulted.

The residents say they are not opposed to development itself but want their land rights recognised and any affected families properly compensated before the project proceeds.

The court, however, did not grant the residents’ request to completely stop the planned groundbreaking or development of the refinery at this stage. Instead, Justice Jane Onyango directed the parties to maintain the status quo and scheduled an inter partes hearing for October 14, when the respondents will have an opportunity to respond to the application.

Dangote Group has said the court order will not prevent the official groundbreaking ceremony scheduled for September 30. The company said, however, that the ruling could affect some activities at the project site.

The proposed refinery is planned for Lamu and is expected to have a processing capacity of up to 700,000 barrels of crude oil per day. The project is part of wider plans to develop Lamu as an energy and logistics hub and could source crude from Kenya and other African producers.

The legal dispute comes as preparations for the project accelerate. More than 2,900 tonnes of heavy equipment for the planned development recently arrived at Lamu Port, ahead of the scheduled groundbreaking.

The October 14 court proceedings are expected to provide the next major development in the dispute, particularly on the residents’ claims concerning land rights, compensation, public participation and the proposed refinery’s development.

For now, the court has ordered the status quo on the disputed parcel to be maintained, while Dangote’s planned groundbreaking remains scheduled to proceed.