President William Ruto has warned political and business interests against attempts to derail the proposed Sh2.2 trillion Dangote oil refinery in Lamu.
Speaking during his Coast development tour, Ruto accused unnamed “brokers” of using court cases, social media campaigns and demands for shares to frustrate the investment.
The President said his administration will not allow such efforts to undermine what he described as a major investment for Kenya. Nigerian billionaire Aliko Dangote backs the proposed refinery, which could become one of the region’s largest petroleum-processing facilities.
Sh2.2 Trillion Dangote Refinery
The project could cost about Sh2.2 trillion, equivalent to roughly $17 billion. Its planned design targets a processing capacity of up to 700,000 barrels of crude oil per day, putting the facility among the largest proposed petroleum projects in East Africa.
Ruto said the refinery could help lower fuel costs while creating more than 60,000 jobs for Kenyan youth. He also said the project could strengthen Kenya’s petroleum-processing capacity and support energy markets across the region.
The government plans to hold the groundbreaking ceremony on Wednesday, September 30, 2026. Preparations have intensified ahead of the ceremony as the project continues to attract attention because of its scale and potential economic impact.
133 Lamu Residents Challenge Project
However, the refinery faces a legal dispute involving 133 residents from Chandavai in Lamu County. The residents have taken the matter to court, arguing that the proposed refinery site includes ancestral land where their families have lived and farmed for generations.
The residents have raised concerns about land ownership, compensation, resettlement and public participation. They argue that authorities should address their concerns before development continues on the disputed land.
The legal challenge has added another hurdle to the government’s push to launch the project. It has also placed land rights and the refinery’s wider economic ambitions at the centre of the dispute.
Court Maintains Status Quo
The Malindi Environment and Land Court declined to stop the planned groundbreaking. However, the court ordered the parties to maintain the status quo on the disputed land until October 14, 2026.
The ruling allows preparations for the September 30 ceremony to continue while the legal dispute remains before the court. The proceedings could determine how authorities handle the residents’ land claims as the project moves forward.
Ruto Defends Investment
Ruto has maintained that Kenya must protect major investments from political and commercial interference. He argued that similar “broker” interests previously contributed to Kenya losing major regional opportunities.
The President has urged stakeholders to allow the refinery project to proceed. Meanwhile, the Chandavai residents continue to pursue their claims through the courts, keeping land rights, compensation and public participation at the centre of the debate.
The September 30 groundbreaking could mark a major step in the Sh2.2 trillion project. However, the ongoing court case means the dispute over the land will remain part of the refinery’s next phase.
