A Kenyan court has lifted an interim restriction on Aliko Dangote’s proposed $16 billion oil refinery in Lamu, allowing the project to proceed while a legal dispute over land ownership and environmental compliance continues.
Justice Jane Onyango of the High Court in Malindi lifted the restriction on Wednesday after identifying an error in the land parcel cited by 133 residents challenging the development of the proposed 700,000-barrel-per-day refinery.
The court allowed the petitioners to amend their filing to reflect the correct property and adjourned the case until November 24, 2026. Additional interested parties may also join the proceedings, with lawyer George Wakahiu telling the court that about 700 other residents had indicated their intention to participate.
The ruling removes an immediate legal obstacle to the project but does not resolve the underlying dispute. The petitioners allege that the refinery threatens their property rights and that the developers have not demonstrated compliance with environmental regulations.
They have also raised concerns about the location’s sensitivity, given Lamu’s cultural heritage and its status as home to a UNESCO World Heritage site.
The court had issued the interim restriction on September 25, directing parties to maintain the status quo on the contested land pending a hearing scheduled for October 14.
Dangote Group had maintained that the earlier order did not amount to a complete suspension of the project.
“The court has not halted the groundbreaking ceremony of the refinery at this stage,” the company said in a statement, adding that preparations would continue within the limits of the court’s directive.
The latest decision follows expressions of support for the project by Kenyan parliamentary leaders, who also pledged to back Dangote Group’s planned initial public offering, according to an October 12 statement by the company.
The proposed Dangote East Africa Petroleum Refinery and Petrochemicals project is designed to process 700,000 barrels of crude oil daily, matching the capacity of the company’s refinery in Lagos.
The company formally launched construction on September 30, with completion expected within 40 months and commissioning targeted for 2030.
The project is expected to expand East Africa’s refining capacity, but the ongoing legal challenge leaves land rights and environmental compliance unresolved.
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