DANGOTE SHRUGS OFF LAMU PROTESTS, BRACES FOR COURT BATTLE

Nigerian billionaire Aliko Dangote has dismissed protests and a court challenge over the proposed Sh2 trillion East Africa Oil Refinery in Lamu, insisting that the project will move ahead despite opposition from residents over disputed land.

Speaking on Tuesday, September 29, during an investor engagement forum at the Nairobi Securities Exchange, Dangote addressed growing resistance to the refinery ahead of its scheduled groundbreaking on Wednesday, September 30.

The project, estimated at $16 billion, is expected to process up to 700,000 barrels of crude oil per day when completed, matching the capacity of Dangote's refinery in Nigeria. Construction is expected to begin in November, with completion targeted for 2030.

Dangote said disputes surrounding large investments were not unusual in Africa and cited a previous land case involving one of his projects in Senegal, where construction was halted for about a year before the matter was resolved through the courts.

“This is normal for us in Africa. In Senegal, they even stopped our factory for one year, and we went up to the Supreme Court to get a judgement,” he said.

He further maintained that his company was aware of those opposing its projects and was prepared to confront the latest challenge.

“We know who the people are doing all these things, so we will face them,” Dangote said.

In an interview with the BBC, the businessman was similarly dismissive of the protests, describing them as “games” involving local fuel marketers and international players who, he argued, benefit from East Africa's continued reliance on imported refined petroleum products.

“We don't care; it is normal in Africa. Anybody who wants to cause trouble, we are ready for them,” he said.

The continent's richest man also rejected suggestions that the refinery project was proceeding without addressing compensation concerns, saying the government had already handled compensation for the land made available to the project.

“The issue of compensation had actually already been done by the government... It's not that compensation has not been paid,” he said.

But the claims by the investor and government have not ended the dispute.

A group of 133 residents from areas including Chandavai and Mvinjeni in Lamu County has moved to the Malindi Environment and Land Court, arguing that the land earmarked for the refinery forms part of their ancestral property.

The residents allege that preparatory works resulted in the clearing of crops, trees and other property and contend that the process was undertaken without adequate notice, public participation and compensation.

They are seeking, among other orders, protection from further activity on the disputed land and compensation for alleged violations of their property and administrative rights.

On September 25, Justice Jane Onyango ordered the parties to maintain the status quo on L.R. No. 13061 in the Hindi/Manda Magogoni area pending further proceedings.

The order restricts activities including clearing, excavation, fencing, demolition, construction, transfer or disposal of the disputed portions.

However, the court declined to stop the September 30 groundbreaking ceremony itself. The matter is scheduled for an inter partes hearing on October 14, when the court will consider the application further.

The legal dispute has already spilled onto the ground, with police using tear gas to disperse residents protesting over compensation ahead of the launch.

Despite the court order, Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the groundbreaking would proceed as planned.

“Soon Kenya will provide a route for imported products as well as finished products. We will be launching the Dangote refinery in Lamu tomorrow,” Wandayi said on Tuesday while speaking during the welcoming of Rwanda's maiden oil vessel at the Kipevu Oil Terminal in Mombasa.

President William Ruto has also defended the investment, accusing opponents of trying to frustrate a project he says will have major economic benefits for Kenya and the wider region.

The administration expects the refinery to create about 60,000 jobs at peak construction and operation stages while attracting related industries such as petrochemicals, plastics, fertiliser production and bitumen manufacturing.

The project is also expected to incorporate a 1,000-megawatt power plant, with part of the electricity intended for the national grid.

Dangote has argued that the refinery's benefits will extend well beyond the facility itself, describing it as a gateway for additional investment.

“What this investment will do for the Kenyans, it is not only the refinery; the refinery is like the gate. Once you open and have the refinery, you'll be shocked at how many people will come and invest in Kenya,” he said.

The proposed refinery would be Kenya's biggest infrastructure project since independence by the figures cited for its investment, surpassing the $5.1 billion Standard Gauge Railway. It is also being positioned as a major step towards reducing East Africa's dependence on imported refined petroleum products.

Questions have nevertheless been raised over why Kenya was selected despite not being an oil-producing country. Dangote and the government have maintained that a refinery does not have to be located in a country that produces crude oil.

“Singapore doesn't produce a single drop of oil, yet they have a lot of refineries,” Dangote said.

The project therefore now faces two parallel tests: whether the developers can maintain momentum behind one of the region's largest proposed industrial investments, and whether the outstanding land dispute can be resolved without further confrontation with the affected residents.

For now, the groundbreaking is going ahead, but the October 14 court proceedings could determine how activities on the disputed land proceed thereafter.