Billionaire Aliko Dangote’s proposed Ksh.2 trillion ($15 billion) oil refinery in Lamu has cleared its first legal hurdle after a Malindi court declined to stop the project, allowing preparations for its planned launch to continue.
The ruling, delivered on Monday, September 28, 2026, came hours after 133 residents of Chandavai moved to court seeking orders to halt construction, arguing that the government had taken over ancestral land without adequately recognising their rights or providing compensation.
Rather than stopping the project, the court directed the parties to maintain the status quo as the case proceeds.
The dispute is scheduled for a further hearing on October 14.
State Agencies Named in Dispute
The residents say their families have occupied the disputed land for generations, using it for farming and livestock keeping, while building homes, mosques and shrines. They also claim that bulldozers destroyed crops and trees and that the land acquisition process failed to account for the people actually living on the property.
The case names several government agencies, the National Land Commission, the LAPSSET Corridor Development Authority and Dangote Industries, among other parties. The allegations have yet to be determined by the court.
The legal challenge comes a day before President William Ruto is expected to preside over the refinery’s groundbreaking ceremony on September 30, 2026.
Preparations are already underway, with about 2,930 tonnes of construction equipment arriving at Lamu Port on September 26.
Over 60,000 Jobs From the Refinery
The proposed refinery is designed to process up to 700,000 barrels of crude oil per day, potentially making it the largest in East Africa. The Kenyan government estimates the project will cost approximately KSh2 trillion and generate around 60,000 jobs.
Dangote is developing the project alongside the Africa Finance Corporation. He has also proposed building a 1,000-megawatt power plant alongside the refinery, with a commitment to supply part of its electricity to Kenya.
While Monday’s decision allows the project to move forward for now, the underlying land dispute remains unresolved.
The October hearing will be a key step in determining how the competing claims over the site are handled.