By Udeme Akpan, Energy Editor
The African Energy Chamber (AEC) has backed the planned 700,000 barrels-per-day Dangote refinery in Lamu, Kenya, amid a court order temporarily restricting activities on the land earmarked for the project.
The Malindi Environment and Land Court issued an interim order directing parties to maintain the status quo on the land pending a hearing scheduled for October 14, 2026.
The order followed a petition by 133 residents of Chandavai in Lamu County, who claim that the land allocated for the refinery, identified as LR No. 13061, forms part of their ancestral heritage.
The petitioners are seeking recognition of their claims and compensation.
The court order came ahead of the planned groundbreaking, initially scheduled for September 30, and has raised concerns over possible delays to the $15 billion-$16 billion project.
In a statement, the AEC said legitimate concerns over land rights, compensation and environmental compliance should be addressed in accordance with Kenyan law, while urging that the dispute be resolved without prolonged delays.
“Africa cannot continue exporting its energy security and then acting surprised when conflicts thousands of kilometres away determine what our people pay for fuel,” AEC Executive Chairman, NJ Ayuk, said.
“The communities of Lamu must have their rights respected, and legitimate questions around land and compensation should be resolved quickly and fairly. But those issues cannot become an excuse to indefinitely delay one of the most important downstream investments East Africa has seen in decades.”
The planned refinery is expected to strengthen East Africa’s refining capacity and reduce the region’s dependence on imported petroleum products.
Kenya has not had an operating refinery since the Kenya Petroleum Refineries Limited facility ceased operations in 2013, leaving the country dependent on imports of refined petroleum products.
The AEC said the project could also reduce the region’s exposure to disruptions in international petroleum supplies.
It cited the Dangote refinery in Nigeria as an example of how large-scale refining capacity could affect regional petroleum supply.
The Nigerian facility, originally designed for 650,000 barrels per day, is undergoing expansion plans that could increase its capacity to 1.2 million barrels per day.
According to the AEC, the refinery has contributed to lower petroleum product imports and increased refined-product exports from Nigeria.
The Chamber said the Kenyan refinery is expected to be completed by 2030.
Ayuk said Dangote’s experience in Nigeria demonstrated the potential of African capital to develop domestic and regional refining capacity.
“Aliko Dangote has already demonstrated what African capital and African entrepreneurship can achieve in refining. Kenya now has an opportunity to build that same resilience in East Africa. Resolve the dispute, protect the communities and build the refinery,” he said.
The Lamu dispute comes against the backdrop of other major African energy projects that have faced legal, environmental or community-related challenges.
The AEC cited the East African Crude Oil Pipeline and the West African Gas Pipeline as examples of regional energy infrastructure projects that have encountered opposition and delays.
The Chamber said the Dangote refinery should not become another casualty of prolonged disputes, while stressing that community rights and legitimate legal claims must be addressed.
The facility is expected to supply Kenya and other East African markets with refined petroleum products, providing an additional source of supply for a region that remains heavily dependent on imports.
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