A Kenyan court has lifted an earlier restriction on the development of Aliko Dangote’s proposed $16 billion oil refinery in Kenya. This means the Dangote Kenya refinery can now proceed despite ongoing legal issues over land ownership and environmental concerns.
The ruling was delivered on Wednesday, October 14, 2026, by Justice Jane Onyango of the Environment and Land Court in Malindi. This followed a legal challenge brought by 133 residents of Lamu County against the Dangote Kenya refinery project.
The residents had challenged the proposed construction of the 700,000-barrel-per-day refinery. They argued that the Dangote Kenya refinery could threaten their property rights and had not complied with environmental regulations.
The court’s decision followed the discovery of an error in the land parcel identified by the petitioners in their application.
Kenyan court identifies error in land dispute
During Wednesday’s proceedings, Justice Onyango lifted the earlier restriction. She did this after determining that the residents had cited the wrong land parcel in their court documents.
The judge subsequently permitted the petitioners to amend their application to reflect the correct property involved in the dispute.
The court also allowed the possibility of additional parties joining the proceedings. Approximately 700 residents have reportedly expressed interest in the case.
The matter was adjourned until November 24, 2026, for further proceedings.
The latest ruling removes the previous restriction. However, it does not resolve the substantive questions concerning land ownership, compensation and environmental compliance at the Dangote Kenya refinery site.
Residents challenge Dangote refinery project
The legal dispute began after residents raised concerns about the acquisition of land intended for the refinery project in the Lamu archipelago.
The applicants argued that they had occupied and cultivated portions of the land for generations. They said they deserved recognition and compensation before development activities proceeded.
They also questioned whether the project had complied with Kenya’s environmental requirements, including environmental impact assessments and public consultations.
On September 25, the court directed the parties to maintain the existing situation on the disputed land. This order was to remain until the October 14 hearing.
The interim order restricted activities on the affected property. However, Dangote Group maintained that it did not prevent the project’s groundbreaking ceremony.
Dangote’s $16bn refinery receives government backing
The proposed refinery forms part of Dangote Group’s expansion into East Africa. It is expected to process approximately 700,000 barrels of crude oil daily. In fact, the Dangote Kenya refinery project is one of the region’s largest planned investments.
The project aims to reduce the region’s dependence on imported petroleum products and strengthen domestic fuel production.
Dangote and Kenyan President William Ruto held the project’s groundbreaking ceremony on September 30, despite the pending legal challenge.
The project has also attracted political support. Kenyan parliamentary leaders have expressed backing for the investment and Dangote Group’s share offering on October 12.
The facility is expected to serve Kenya and neighbouring East African countries, creating employment and supporting industrial development.
However, the legal dispute over the affected land remains unresolved.
The case will return to court on November 24. The parties will continue proceedings concerning the residents’ claims and the proposed refinery development.
