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Nigerian billionaire Aliko Dangote and Kenyan President William Ruto are scheduled to launch construction of the East Africa Oil Refinery in Lamu on September 30, according to Energy and Petroleum Cabinet Secretary Opiyo Wandayi. The project, estimated at $16 billion by the Dangote Group with some Kenyan officials citing up to $20 billion, is designed to process 700,000 barrels of crude oil per day once completed around 2030. Dangote has described the initiative as an effort to replicate the success of his Lagos refinery, which reached full capacity earlier in 2026, while offering East African governments a combined 30 percent equity stake valued near $1.5 billion.
More than 130 residents from Chandavai in Lamu County filed suit in the Malindi Environment and Land Court, claiming the targeted land as ancestral property where their families have farmed, kept livestock, built homes, mosques, shrines and graves for generations, court records show. The petitioners, led by Salim Tima Swale, allege government and LAPSSET agents destroyed crops and trees on the site without prior notice or compensation starting in August 2024, according to reports by Kenyans.co.ke. Justice Jane Onyango directed that the status quo on Land Reference No. 13061 be maintained until a hearing on October 14, though the order does not block the groundbreaking ceremony itself.
Dangote addressed the dispute directly on September 29 during an investor meeting in Nairobi, stating that the Kenyan government had already managed land compensation for the site. “If you want to go to court to stop the Lamu refinery, go ahead; we are ready for you,” he said, adding that such legal challenges are commonplace for major African infrastructure projects. The businessman noted his team was aware of those behind the opposition but remained focused on moving forward with construction that could create more than 50,000 direct and indirect jobs.
Kenya imported over 10.88 million cubic metres of refined petroleum products through Mombasa Port in the year ended June 2026, with 72 percent arriving under a government-to-government framework primarily from Middle East suppliers, according to the Energy and Petroleum Regulatory Authority statistics report. The planned refinery is positioned to draw crude from Kenya’s Turkana fields, Uganda and South Sudan via the LAPSSET corridor while reducing the hard-currency outflow on fuel imports that reached record levels last year. Annual regional demand for petroleum products is estimated between 20 million and 30 million metric tons, a volume that would require more than one million barrels per day of refining capacity, according to economic adviser David Ndii.
The facility will sit adjacent to Lamu Port, which recently received 2,930 metric tonnes of heavy machinery aboard the MV Da Yang in preparation for the project, local port authorities reported. Financing is structured with 70 percent debt and 30 percent equity, drawing on internally generated funds, bonds and proceeds from the planned initial public offering of Dangote’s Nigerian refinery, the billionaire has stated. Engineers India Limited secured a contract exceeding $450 million for project management services, marking an early step in detailed engineering that builds on lessons from the Lagos development to accelerate the Kenyan timeline to under four years.
Police deployed tear gas Tuesday to disperse demonstrators in Lamu Town who demanded not only compensation but also community shares in project benefits and fuller public participation, as covered by People Daily and other outlets. The Dangote Group said in a statement that while the groundbreaking proceeds, certain site activities may be constrained until the court case is resolved. Protesters referenced experiences with earlier LAPSSET components, including the Lamu Port itself, where they felt marginalised, according to accounts gathered by regional reporters.
