Dangote: Lamu Refinery Land Dispute Won't Halt Groundbreaking

• A Kenyan court ordered a status quo on disputed land for Dangote's Lamu refinery project but did not halt its scheduled groundbreaking ceremony.
• The Malindi Environment and Land Court's order, issued by Justice Jane Onyango, affects parcel LR No. 13061 and mandates no new activities until an October 14 hearing.
• The legal challenge was brought by 133 Chandavai residents claiming ancestral rights, citing generations of occupation and a lack of compensation or resettlement.
• Dangote Group acknowledged potential impacts on site activities but stated the ceremony would proceed, referencing a past successful legal defense in Senegal.
• The Kenyan government, with President William Ruto expected to attend, fully supports the $16 billion, 700,000 bpd refinery, which is part of Dangote's African expansion.

The Dangote Group has affirmed its readiness to navigate legal challenges, drawing on past experiences to defend its interests in the face of opposition.

The Dangote Group has declared that a recent Kenyan court order concerning a land dispute will not impede the scheduled groundbreaking ceremony for its ambitious $16 billion refinery project in Lamu, set for Wednesday. The Malindi Environment and Land Court had issued an order for all parties to maintain the existing status quo on the contested land until October 14, when the case is slated for a full hearing. This judicial directive, dated September 25, was publicly disclosed on Monday, according to reports.

In an official statement released on Tuesday, the Dangote Group clarified its position, asserting that "The court has not halted the groundbreaking ceremony of the refinery at this stage." However, the company acknowledged that ongoing activities at the project site could potentially be impacted, given the court's instruction prohibiting any new undertakings on the disputed parcel of land pending the resolution of the legal proceedings. This development places the Dangote Lamu refinery land dispute at the forefront of regional business news.

The court's order stemmed from an application filed by 133 residents hailing from Chandavai, who assert ancestral ownership and rights over the specific land parcel, identified as LR No. 13061, located within the Hindi/Manda Magogoni area of Lamu County. These residents are actively challenging the proposed refinery project, citing a fundamental lack of adequate compensation and resettlement provisions.

Their claims are deeply rooted in history, with residents testifying that their families have continuously occupied and cultivated this land for generations. They highlight the presence of homes, agricultural farms, mosques, sacred shrines, and family graves on the property. Consequently, the Chandavai residents are seeking official recognition of their long-standing interests in the land acquisition process, alongside demands for fair compensation and appropriate resettlement arrangements. They have also petitioned the court to impose a halt on any further construction or related activities on the land until the case is definitively resolved.

Despite the ongoing legal challenge, the Kenyan government has unequivocally thrown its weight behind the Dangote Lamu refinery project. President William Ruto is anticipated to attend the groundbreaking ceremony alongside Aliko Dangote, signaling high-level support.

During a visit to Dangote's refinery in Lagos on Monday, President Ruto affirmed his administration's full backing for the ambitious plan.

The proposed refinery, designed to process an impressive 700,000 barrels per day (bpd), represents a significant component of Dangote's broader expansion strategy across the African continent. Aliko Dangote himself has publicly addressed the legal hurdles, drawing parallels to a similar challenge his company faced during the launch of a factory in Senegal. He recounted that the company successfully pursued that matter through the courts, ultimately securing a favorable judgment from the Supreme Court. This prior experience, Dangote stated, has thoroughly prepared the group to vigorously defend its interests through established legal channels. The Dangote Group has affirmed its readiness to navigate legal challenges, drawing on past experiences to defend its interests in the face of opposition.

Source: Original reporting via Daily Trust