Kenya will take a stake in Dangote Group’s planned $16 billion refinery investment in Lamu, which is expected to be on the Nairobi Securities Exchange, President William Ruto said. This comes despite a court dispute over the investment, which has raised uncertainty about activities at the site.
The 700,000-barrel-per-day refinery is scheduled for a groundbreaking ceremony on Wednesday, which Dangote Group said would proceed despite the Kenyan court order concerning land rights.
The Malindi Environment and Land Court had ordered all parties involved to maintain the status quo on a disputed parcel in Lamu County until a hearing on October 14. The case was brought by 133 residents who claim ancestral rights to the land and raised concerns about compensation, resettlement and environmental requirements.
Dangote Group said the order would not prevent the groundbreaking ceremony but acknowledged that some activities at the project site could be affected while the case is pending.
The company said it remains committed to proceeding with the refinery, which is expected to become one of the largest refining projects in East and Central Africa.
Ruto, meanwhile, said the Kenyan government would participate as an investor and that the refinery would eventually be listed on the Nairobi Securities Exchange, giving Kenyan investors an opportunity to acquire shares in the project.
The president did not disclose the value of the government’s stake in his remarks. Kenya had previously indicated plans to take a 10% equity interest in the refinery, which would be worth roughly $500 million based on an estimated project value of $5 billion, although the overall investment cost has more recently been put at about $16 billion.
Ruto has strongly backed the project, describing it as more than an energy investment and saying it would help expand Kenya’s industrial base, create jobs and develop skills in engineering and other sectors.
The refinery is planned for Lamu, a deep-water port that the Kenyan government wants to develop into a regional energy and logistics hub. It is expected to process crude from Kenya and other African producers and supply refined petroleum products to markets across East Africa.
The project follows Dangote’s development of its 650,000-barrel-per-day refinery in Lagos, which has become a major source of refined petroleum products for Nigeria and international markets.
However, the Kenyan project faces several challenges beyond the land dispute, including securing sufficient crude supplies. Kenya currently has no commercial crude production, meaning the refinery would need to rely on domestic and imported crude from other African producers.
Heavy construction equipment has already begun arriving at Lamu Port ahead of the groundbreaking. About 2,930 metric tonnes of machinery were delivered to the port in recent days.
The court case will now be closely watched as Dangote and the Kenyan government push ahead with the project while seeking to resolve the land claims.
For Kenya, the planned refinery represents a major industrial investment and potential new source of refined fuel. For Dangote, it would mark an expansion of the group’s refining business beyond Nigeria into East Africa.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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