Lamu Refinery Faces Land Dispute as Residents Protest Ahead of Dangote Groundbreaking

A planned KSh2.2 trillion Dangote refinery in Lamu is facing a fresh test over land rights, with residents protesting on the eve of its scheduled groundbreaking and a court order freezing activity on a disputed parcel until October 14.

Residents in Lamu took to the streets on Tuesday, September 29, demanding answers over compensation, resettlement and what they say is inadequate consultation over land linked to the proposed refinery.

The demonstrations came just a day before President William Ruto and Dangote Group founder Aliko Dangote are expected to preside over the project's groundbreaking.

Police were deployed during the protests. Local reports said officers used tear gas to disperse demonstrators after confrontations broke out. Residents also alleged that police fired shots into the air.

Those claims had not been independently confirmed by police by the time of publication.

One protester, Benson Kukuyama, was reportedly arrested during the demonstrations.

The protests expose a difficult question for a project being presented as a major energy and industrial investment: can construction move ahead while a section of the local community says its land rights have not been resolved?

Residents take land dispute to court

The dispute centres on Land Reference No. 13061 in the Hindi/Manda Magogoni area of Lamu.

A group of 133 Chandavai residents has moved to the Malindi Environment and Land Court, saying their families have occupied and used parts of the land for generations.

The residents claim the disputed area supports homes, farming and livestock keeping. They also say it contains mosques, shrines and family graves.

Their court application names the National Land Commission, LAPSSET Corridor Development Authority, Lamu County Government and Dangote Industries among the respondents.

The residents argue that they have not received adequate compensation or a clear resettlement arrangement for land affected by the development.

Those claims remain before the court and have not been finally determined.

The respondents have been given 14 days after being served to respond. The matter is scheduled for an inter partes hearing on October 14, 2026.

What the court actually ordered

The legal position is more nuanced than a simple order stopping the refinery.

On September 25, Justice Jane Onyango declined to certify the residents' application as urgent and directed that the existing status quo on the disputed parcel be maintained until the October 14 hearing.

The order concerns the disputed land itself. It does not expressly cancel the September 30 groundbreaking ceremony.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi said on Tuesday that the launch would go ahead as planned.

“We will be launching the Dangote refinery in Lamu tomorrow,” Wandayi said while speaking in Mombasa.

Dangote Group has also said the court order will not stop the official groundbreaking, although it acknowledged that activities at the affected site could be restricted while the case is pending.

That distinction matters.

The ceremony and actual construction activity on disputed portions of land are not necessarily the same legal question.

The October 14 hearing will give the court an opportunity to consider the residents' application after the respondents have filed their responses.

Machinery has already arrived

The dispute comes as the refinery project moves closer to physical construction.

On September 26, the Port of Lamu received the MV Da Yang, carrying about 2,930 metric tonnes of heavy construction machinery intended for the refinery project.

The shipment is one of the clearest signs yet that the long-discussed project is moving from planning towards construction.

The proposed refinery is expected to have a capacity of 700,000 barrels of crude oil a day.

Dangote has previously put the cost at between US$15 billion and US$16 billion, while Kenyan government reports have placed the project at about KSh2.2 trillion. Reuters reported that the company hopes to complete the refinery by 2030.

The facility is expected to process crude from Kenya's Lokichar oilfields as well as supplies from other parts of East and Southern Africa.

A project with big economic promises

The refinery is being positioned by the government and its backers as a major addition to Kenya's energy infrastructure.

It is expected to expand domestic and regional refining capacity, create jobs and support related industries around Lamu.

The project is also closely linked to the wider development of the Lamu Port and the LAPSSET corridor.

For the government, the arrival of heavy equipment and the planned groundbreaking represent important milestones in turning those plans into a functioning industrial hub.

But for residents challenging the land arrangements, the issue is more immediate.

They want their claims over the land addressed before development changes the areas where they live, farm and maintain community sites.

What happens next?

For now, two processes are moving at the same time.

The government and Dangote Group are preparing for the September 30 groundbreaking.

The residents' legal challenge is moving towards the October 14 hearing.

The court has not yet ruled on the residents' underlying claims to the land or their demands for compensation and resettlement.

That means the dispute is far from settled.

The next test will be whether the groundbreaking proceeds without further confrontation and how the court deals with the competing claims over the disputed land.

For Lamu residents, the refinery debate is therefore no longer only about the promise of a multibillion-shilling investment.

It is also about who gets to benefit from development, whose land is affected and whether those claims are resolved before construction changes the ground beneath them.

About the Author

Maureen Onyango is a journalist passionate about storytelling, life coaching and spiritual lessons. She studied at the Kenya Institute of Management and enjoys telling stories that inform, inspire and empower communities.