Dangote launches $16bn refinery project in Kenya despite court challenge

Aliko Dangote and Kenyan President William Ruto have attended the groundbreaking ceremony for a planned $16bn refinery and industrial complex in Lamu County, despite a court order seeking to halt construction at the site. Former Nigerian president Olusegun Obasanjo and Ugandan President Yoweri Museveni were among those present at Wednesday’s event. The ceremony was also attended by senior representatives from Benin, Togo and Ethiopia, according to Mr Ruto’s posts on X.

Mr Ruto said the Dangote East Africa Petroleum Refinery was designed to process 700,000 barrels of crude oil a day. He said the project would establish Lamu as an energy and industrial centre for East Africa and beyond. The Kenyan president described the development as a KSh2.2tn, or $16bn, project.

He said it would include an integrated industrial complex with a 1,000-megawatt power plant, a plastics factory, and facilities for producing fertilisers and chemicals. The groundbreaking followed an order from the Malindi Environment and Land Court directing that construction be placed on hold pending a further hearing. The source material said the court cited alleged forceful eviction involving farmers and local residents of Chandavai, in Lamu County.

Dangote Group said the order could affect activities at the site but maintained that the ceremony would proceed. During a fireside chat at the Nairobi Securities Exchange, Dangote expressed confidence that the project would advance despite the legal proceedings. “I’m sure some of you must have seen that one court has given an order that we shouldn’t do any construction?” Dangote said, according to the source material.

He added that the company was prepared to respond to those challenging the project, saying: “Anyone who wants to cause trouble, we are ready for them.”