The High Court has lifted an earlier restriction affecting the proposed Sh2 trillion oil refinery in Lamu by Nigerian billionaire Aliko Dangote, allowing the project to proceed as a land ownership dispute remains pending before the court.
Justice Jane Onyango on Wednesday, October 14, 2026, lifted the restriction during a Malindi court session after finding that the residents had cited the wrong parcel of land in their petition. The court allowed the petitioners to amend their case to identify the correct property, with the matter scheduled for hearing on November 24, 2026. The judge also allowed additional interested parties to join the proceedings.
The petition was filed by 133 residents who have raised concerns over land ownership, property rights and compliance with environmental regulations in the proposed development of a refinery with a capacity of 700,000 barrels of crude oil per day. The residents argue that the project must comply with the legal requirements governing environmental impact assessments and public participation before it proceeds, particularly given Lamu’s environmental and cultural significance.
During Wednesday’s proceedings, lawyer George Wakahiu told the court that about 700 additional residents had expressed interest in joining the case, potentially increasing the number of petitioners.
The ruling follows interim orders issued by the Malindi Environment and Land Court on September 25, 2026, requiring parties involved in the land dispute to maintain the existing conditions on the contested property pending further proceedings. Dangote Group had previously maintained that the orders did not amount to a complete halt of the refinery project, saying preparations would continue within the limits set by the court.
The latest decision removes the earlier restriction following the identification of the error in the land parcel cited in the petition. However, the underlying dispute remains unresolved and will return to court in November.
The proposed Dangote East Africa Petroleum Refinery and Petrochemicals project is valued at $16 billion, approximately Sh2 trillion, and is expected to process 700,000 barrels of crude oil daily. The project was formally launched on September 30, 2026, with construction expected to take about 40 months and commissioning targeted for 2030.
Dangote has proposed that East African countries take up a combined 30 per cent equity stake in the refinery, with Kenya and Rwanda having expressed interest in participating. The development comes as the company also advances plans to expand its existing refinery in Lagos, Nigeria, to a capacity of 1.4 million barrels per day.
Kenya’s proposed refinery has attracted attention over its potential investment value and regional petroleum supply ambitions, even as questions surrounding land ownership and environmental compliance remain before the courts.
