Dangote Proceeds With $16 Billion Kenya Refinery Groundbreaking Ceremony Despite Land Dispute

Africa’s richest man, Aliko Dangote has proceeded with the groundbreaking ceremony of the Kenya oil refinery. 

Dangote Group posted on its WhatsApp channel at 10:07 am WAT on Wednesday: “Join us live from Kenya for the groundbreaking ceremony of the Dangote East Africa Petroleum Refinery and Petrochemicals SEZ”. 

The group said on Tuesday that a Kenyan court order over land rights would not stop the ongoing groundbreaking ceremony for the planned 700,000-barrel-per-day (bpd) refinery in Lamu, although it could affect some activities at the site. 

The Malindi Environment and Land Court ordered that the “status quo prevailing” on the land be maintained until a hearing on October 14. The order, dated September 25, was made public on Monday. 

The case was filed by 133 residents of Chandavai in Lamu County, who say the land earmarked for the refinery is ancestral territory where their families have lived and farmed for generations. 

Dangote, speaking at an investor event in Nairobi, dismissed criticism of the project, including from conservationists and local residents, saying some opposition was coming from traders whose businesses would be disrupted by the refinery. 

“I’m sure some of you must have seen one court (has) given an order that we shouldn’t do any construction? I said no, no. This is normal for us in Africa. … In fact, this is even small,” Dangote reportedly said at the event. 

The planned refinery, near Lamu’s deep-water port on Kenya’s coast, is intended to supply fuel to Kenya and other East African markets. 

Regional governments have been offered a 30% stake in the project. Dangote said investors, including Kenya and Rwanda, would be allowed to spread payments for their equity stakes over four years. 

“We have made it very simple and easy for them to fund their own equity. They are not putting their equity in one day,” he said. 

Rwanda has requested a 10% stake, a proposal that is still under discussion, he added. Other countries have also expressed interest in investing, without being identified. 

The refinery will process crude from regional producers, including Kenya, which is working to start production from its oil reserves, as well as overseas suppliers in the Middle East and the United States (U.S.), Dangote said. 

He added that the project is expected to support petrochemical industries, while pipelines would be built from Lamu to one or two countries in the region.