By AJERAP Correspondent
The African Energy Chamber (AEC) has backed Dangote Industries’ planned $15 billion-$16 billion refinery in Lamu, Kenya, urging the parties involved in a land dispute to resolve their differences without derailing the project.
The Malindi Environment and Land Court ordered parties to maintain the status quo on land designated for the refinery 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, identified as LR No. 13061, is part of their ancestral heritage. The residents are seeking recognition of their claims and compensation.
The court action came shortly before the planned September 30 groundbreaking of the proposed 700,000 barrels-per-day refinery.
Reacting to the development, the AEC said questions relating to land rights, compensation and environmental compliance should be addressed in line with Kenyan law, but cautioned against allowing the dispute to cause 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 proposed refinery is expected to expand Kenya’s domestic refining capacity and reduce the country’s dependence on imported petroleum products.
Kenya has had no operating refinery since the Kenya Petroleum Refineries Limited facility ceased operations in 2013. The AEC said this has left Kenya and the wider East African market heavily dependent on imported fuels.
The Chamber said the Lamu refinery could strengthen regional fuel security by providing additional refining capacity for Kenya and neighbouring markets.
It also cited Dangote’s refinery in Nigeria as evidence of the potential regional impact of major refining investments.
The Nigerian refinery, initially designed for 650,000 barrels per day, is undergoing expansion plans that could raise its capacity to 1.2 million barrels per day. According to the AEC, the facility has contributed to lower petroleum imports and increased refined-product exports from Nigeria.
Ayuk said Kenya now had an opportunity to develop similar refining resilience.
“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,” he said.
“Resolve the dispute, protect the communities and build the refinery.”
The Kenyan project is targeted for completion by 2030 and is expected to supply refined petroleum products to the domestic and wider East African markets.
The AEC noted that the Lamu refinery is not the only major African energy project to face legal or community-related challenges, citing the East African Crude Oil Pipeline and the West African Gas Pipeline.
The Chamber said while the concerns of affected communities must be addressed and legitimate legal claims respected, the refinery should not become a casualty of prolonged disputes.
It called for the outstanding issues to be resolved in accordance with Kenyan law to allow the project to move forward.
