Aliko Dangote has expressed confidence that his proposed oil refinery in Kenya will overcome the legal challenges surrounding the project, after a Kenyan court ordered parties to maintain the status quo on disputed land in Lamu County.
Dangote spoke on Tuesday during an engagement with Kenyan and East African institutional investors in Nairobi, where he downplayed the latest legal challenge and said his experience with major projects had prepared him for disputes of this nature.
The comments followed an order by the Malindi Environment and Land Court concerning land earmarked for the planned refinery. The court directed that the prevailing status quo on the disputed parcel be maintained pending further proceedings, with the case scheduled for an inter partes hearing on October 14.
The case was brought by 133 residents of Chandavai in Lamu County, who say their families have occupied, cultivated and developed parts of the land for generations. The residents have raised concerns about land rights, compensation, resettlement and the process through which the land is being made available for the refinery.
Dangote said he was aware of the court challenge and described such legal disputes as part of the difficulties that can arise when major industrial projects are developed in Africa. He referred to a previous dispute involving one of his projects in Senegal, saying his company had eventually pursued the matter through the courts.
He maintained that the latest challenge would not deter the group from pursuing its Kenyan investment.
The Dangote Group has separately said that the court order does not halt the planned groundbreaking ceremony scheduled for September 30, although activities at the project site could be affected while the court’s status-quo directive remains in force. Reuters reported that the company intends to proceed with the ceremony despite the legal dispute.
The distinction is significant because the court order concerns activities on the disputed land, while the groundbreaking ceremony is a planned event. The court has not yet determined the substantive claims made by the residents or ruled on the legality of the land arrangements for the refinery.
The proposed refinery is expected to have a processing capacity of about 700,000 barrels of crude oil per day. Dangote Industries has presented the project as a major investment in Kenya and the wider East African region, with the potential to increase regional refining capacity and reduce reliance on imported petroleum products.
The residents, however, maintain that their interests in the land should be addressed before the development proceeds. Their case raises questions concerning land ownership, customary interests, compensation and the rights of long-term occupants.
Kenyan authorities have continued to support the proposed investment. President William Ruto has previously expressed support for the project, while the legal dispute remains before the Malindi Environment and Land Court.
For Dangote Industries, the immediate challenge is therefore to advance the project while complying with the court process and addressing the claims being raised over the disputed land. The October 14 hearing is expected to provide the next significant development in the case.
The outcome of the proceedings could determine how the land dispute affects the timing and implementation of the refinery project, but it is too early to conclude that the court challenge will either stop the investment or have no lasting effect.
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