Kenya’s planned $16 billion Dangote East Africa Refinery is set to proceed with its September 30 groundbreaking in Lamu despite a land dispute before the courts, with President William Ruto reaffirming the government’s support for the project.
The planned refinery has cleared a key legal hurdle after the Malindi Environment and Land Court declined an application seeking to stop the groundbreaking and development of the project.
The court instead directed parties to maintain the existing status quo on a disputed parcel of land, LR No. 13061, until the matter is heard on October 14, 2026. The case was brought by 133 residents of Chandavai who argue that the land forms part of their ancestral property and that their community interests should be recognised and protected.
Dangote Group has subsequently confirmed that the court order will not prevent the official groundbreaking ceremony scheduled for Wednesday. The company said, however, that the ruling could affect certain activities at the project site while the legal proceedings continue.
The development comes as preparations for the refinery accelerate. More than 2,900 metric tonnes of heavy construction equipment arrived at the Port of Lamu aboard the MV Da Yang last week, ahead of the planned launch.
Ruto reaffirms government backing
President William Ruto has repeatedly expressed strong government support for the project.
During his visit to Nigeria on September 25, where he toured Dangote’s existing 700,000-barrel-per-day refinery in Lagos, Ruto said the Kenyan government was “100 per cent behind” the Lamu project. He said the government was working to remove administrative and bureaucratic obstacles and create the conditions required for the refinery to move forward.
On Tuesday, September 29, Ruto also warned against efforts that could frustrate the project, amid the ongoing land dispute.
The proposed refinery is expected to have a capacity of 700,000 barrels of crude oil per day, potentially making it the largest refinery in East Africa. Dangote has previously put the investment requirement at approximately $15 billion to $16 billion, although some Kenyan reporting has valued the project at around $17 billion.
Lamu positioned as an energy and industrial hub
The refinery is planned within the LAPSSET corridor and Lamu Port area, linking the project to Kenya’s broader ambitions for the coast to become a major energy, logistics and industrial hub.
The facility is expected to process crude from Kenya and other sources in East and southern Africa, with the resulting petroleum products supplying regional markets. The project is also expected to support associated industries, including petrochemicals, fertiliser, chemicals and packaging.
The refinery is nevertheless facing substantial execution challenges beyond the current land case. Reuters has reported that securing sufficient crude feedstock, financing, infrastructure and stakeholder coordination remain important issues for the proposed development. Kenya currently has limited commercial crude production, meaning the project may need to rely substantially on regional or seaborne supplies.
For now, the immediate milestone remains the September 30 groundbreaking ceremony, with President Ruto and Aliko Dangote expected to attend.The October 14 court hearing will provide the next major legal test for the project and the disputed land.