Kenya Tribunal Clears Legal Hurdle For Dangote’s $16bn Lamu Refinery

Kenya’s Public Private Partnerships Petition Committee has dismissed a challenge to Nigerian billionaire Aliko Dangote’s planned $16 billion oil refinery in Lamu County, according to a report by CEOWORLD Magazine.

The committee ruled that the Consumers Federation of Kenya (COFEK) had not established that the refinery is a public-private partnership or provided a legal basis to compel the government to release project documents.

The ruling, delivered on Friday, followed COFEK’s petition filed under Section 75 of Kenya’s Public Private Partnerships Act, 2021, the CEOWORLD Magazine said.

The group had sought to overturn approvals and obtain details on the government’s procurement route, prospective equity stake, land contribution and other public commitments.

Treasury Cabinet Secretary John Mbadi told the committee that the refinery is “a private commercial investment,” with no plan to transfer it to the state.

According to the CEOWORLD Magazine report, he said any government assistance would be support available to any qualifying private investor.

What the ruling means

The decision effectively places the Lamu project outside Kenya’s PPP framework, which governs procurement, approvals and disclosure for qualifying public-private ventures. That is a significant win for the project’s sponsors, but it does not resolve broader questions over the public resources associated with the development.

Kenya has been considering a 10 per cent stake valued at about $500 million, or KSh65 billion. COFEK had also raised concerns over a reported KSh21.5 billion seed allocation and roughly 7,000 acres of land linked to the project.

A separate High Court petition by activist Francis Awino seeks disclosure of the public money, land, tax incentives and guarantees the government may commit to the refinery. Justice David Mburu certified that case as urgent on October 6, with a mention set for November 12.

Land dispute remains

The project still faces a more operationally significant challenge in the Environment and Land Court in Malindi. One hundred thirty-three residents of Chandavai claim the refinery site sits on their ancestral land and allege they have not received adequate compensation or a resettlement plan.

Judge Jane Onyango lifted an earlier order freezing activity on the land on October 14 after finding that the petitioners had cited the wrong parcel. The court allowed an amended petition, which is scheduled for hearing on November 24.

Dangote has remained publicly confident about the project. “Anybody who wants to cause trouble, we are ready,” he said after residents filed their case, according to CEOWORLD Magazine.

Scale of the project

The proposed Lamu refinery is designed to process 700,000 barrels of crude daily and include a 1,000-megawatt power plant. Its backers argue it could reduce East Africa’s reliance on imported refined fuel and ease pressure on foreign-exchange reserves across the region.

Dangote has offered East African governments a combined 30 per cent stake. Rwanda and Kenya have committed to buying shares, while Tanzania has not indicated whether it will participate.

The project is modeled on Dangote’s refinery near Lagos, which began production in 2024 after years of delays and cost overruns. Dangote has set an ambitious 40-month completion target for Lamu.