A planned $16 billion refinery project by the Dangote Group in Kenya has run into its first major legal hurdle after a Kenyan court ordered parties involved in a land dispute to maintain the status quo at the proposed project site.
The order concerns the disputed land in Lamu County, where the Nigerian conglomerate plans to establish the refinery as part of its expansion across Africa.
But while the ruling has placed some activities at the site on hold, Dangote Group says the development has not stopped the planned groundbreaking ceremony.
The Malindi Environment and Land Court directed all parties in the dispute not to undertake activities on the contested property pending the hearing of the case on October 14.
The suit was filed by 133 residents of Chandavai in Lamu County, who are challenging the use of the land for the proposed refinery.
The residents claim the property belongs to their ancestors and has been occupied and used by their families for farming for generations.
Dangote: Project still moving forward
The Dangote Group acknowledged that the court order could affect some activities at the location, particularly because all parties have been directed to preserve the existing situation until the matter is heard.
However, the company maintained that the ruling does not amount to a cancellation or suspension of the refinery project.
Speaking at an investor event in Nairobi on Tuesday, Dangote Industries founder and Chairman, Aliko Dangote, addressed the development and expressed confidence in the project.
Dangote described the dispute as part of the challenges that can accompany major infrastructure projects on the continent, while suggesting that his company was prepared to navigate the latest obstacle.
“The court has not halted the groundbreaking ceremony of the refinery at this stage,” Dangote said.
He, however, acknowledged that the order could affect activities at the project site before the October 14 hearing.
“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,” he added.
A $16bn project meets a land dispute
The dispute places a local land ownership claim against one of the biggest industrial ambitions associated with the Dangote Group outside Nigeria.
The proposed refinery is valued at $16 billion and is expected to form part of the company’s broader investment interests in Africa.
For the residents challenging the project, however, the issue goes beyond the scale of the investment.
Their case is centred on the ownership and historical use of the land, with the 133 petitioners maintaining that the property has ancestral significance and has supported generations of farming families.
That means the next stage of the dispute will not only determine what happens at the project site in the short term, but could also shape the legal path for one of the continent’s major proposed energy investments.
‘This is normal for us in Africa’
Dangote appeared unfazed by the development when questioned about the court action in Nairobi.
He suggested that legal and community opposition was not unusual when major projects are being developed in Africa.
“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,” he said.
The billionaire added that the latest development was relatively minor compared with some of the challenges the group had faced in its projects.
“In fact, this is even small. Anyone who wants to cause trouble, we are ready for them,” Dangote said.
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His comments underline the company’s determination to proceed with the Kenyan project despite the dispute.
October 14 becomes the next date to watch
For now, the court’s directive means activity on the disputed property will remain constrained until the case comes up for hearing on October 14.
The planned groundbreaking ceremony, however, remains on the table according to Dangote.
The immediate question is therefore no longer simply whether Kenya will host another major Dangote investment.
It is whether the company can move its $16 billion refinery ambition forward while resolving a land dispute involving residents who say the property at the heart of the project has belonged to their families for generations.
The October hearing could provide the next significant indication of how the ambitious project will proceed.