The Dangote Group said a Kenyan court ruling over a land rights dispute would not stop the groundbreaking ceremony for its planned 700,000-barrel-per-day refinery in Lamu on Wednesday, although it could affect some activities at the site.
The Malindi Environment and Land Court ordered that the “status quo prevailing” on the disputed land be maintained until a hearing scheduled for October 14, according to Reuters.
Although the order was dated September 25, it was only made public on Monday.
The lawsuit was filed by 133 residents of Chandavai in Lamu County, who claim the land earmarked for the refinery is part of ancestral heritage.
They said their families had lived and farmed on the land for generations.
The company in a statement said, “The court has not halted the groundbreaking ceremony of the refinery at this stage. However, activities at the site may be affected by the ruling as both parties are required not to carry activities until the case is heard on 14th October.”
Speaking at an investor event in Kenya’s capital, Nairobi, on Tuesday, the chairman of Dangote Group, Aliko Dangote expressed confidence that the refinery project would proceed as planned.
“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,” he said. “Anyone who wants to cause trouble, we are ready for them.”
The proposed Lamu refinery on Kenya’s coast is designed to replicate the success of Dangote’s 700,000-barrel-per-day plant in Ibeju- Lekki, Lagos.
The refinery has helped transform Nigeria from a major fuel importer into a growing exporter.
Unlike Nigeria, however, Kenya currently has no commercial oil production despite being one of East Africa’s key energy markets.
Dangote has estimated that the Lamu refinery will cost between $15bn and $16bn and is targeting completion by 2030.
