This is a small issue: Dangote reacts after court ruling on Lamu refinery

Aliko Dangote, the president of the Dangote Group, has addressed the land compensation issue regarding his planned East Africa Oil Refinery in Lamu. On September 29, 2026, he stated that the Kenyan government had already compensated people regarding the large tract of land designated for the project. Dangote rejected suggestions that compensation had simply been ignored and emphasized that the government had paid what was owed.

Residents of Chandavai and surrounding areas are challenging this compensation, as over 100 residents have filed a case at the Malindi Environment and Land Court. They argue that their families have occupied, cultivated, and developed parts of the disputed land for generations, and they want to be identified, recognized, and compensated before the project proceeds.

The legal challenge has become a major issue ahead of the planned groundbreaking ceremony on September 30. A court order has maintained the status quo on the disputed land, but the groundbreaking ceremony is expected to proceed. Residents insist that compensation remains unresolved from their perspective and want guarantees that affected communities will not be left behind.

The controversy has revived memories of previous infrastructure developments in the region, with some residents comparing their concerns with the limited benefits received from earlier projects. Dangote maintains that the refinery will bring substantial economic opportunities, generating 60,000 jobs and creating a wider economic chain.

Despite the land dispute, the project is expected to cost around $16 billion and serve the Kenyan and wider East African market.