Oluyemi Israel
Nigerian billionaire and President of the Dangote Group, Aliko Dangote, is facing growing concerns from Lamu residents over his proposed $16bn oil refinery in Kenya, with communities raising questions about land rights, compensation and environmental impact.
The refinery, planned for Lamu, is expected to process 700,000 barrels of crude oil daily and become one of East Africa’s largest industrial projects when completed.
While supporters describe the project as a major economic opportunity that could create jobs and boost energy supply, some residents say their concerns must be addressed before construction continues.
The dispute centres on land allocated for the refinery, with affected residents questioning the process of acquisition and the compensation arrangements for communities linked to the area.
A group of 133 Lamu residents has approached the Kenyan High Court to challenge activities on the disputed land, seeking clarity on their rights and the future impact of the project.
The residents say they support development but want assurances that the refinery will not threaten their homes, livelihoods and cultural heritage.
The concerns emerged ahead of the refinery’s groundbreaking ceremony, which was attended by President of Kenya, William Ruto, President of the Dangote Group, Aliko Dangote, and other African leaders.
President of the Dangote Group, Aliko Dangote, said the company only used the portion of land allocated by the Kenyan government and rejected claims that the project occupied more land than required.
The billionaire also accused local marketers and international oil companies of fuelling opposition to the refinery, alleging that some interests may be threatened by increased competition in the energy sector.
The Save Lamu campaign group has also raised environmental concerns, with the organisation calling for transparency over the project’s environmental impact assessment and proposed measures to protect the local ecosystem.
Co-founder of Save Lamu, Walid Ali, said residents want access to the environmental findings and details of how the project plans to reduce possible harm to the community.
The refinery is expected to create about 60,000 jobs during peak construction and includes plans for a 1,000-megawatt power plant to support industrial activities around the project.
Supporters of the investment believe the refinery could transform Lamu into a major economic hub, while critics continue to demand stronger protections for residents and the environment.
With the Kenyan High Court restricting construction activities on the disputed land pending further hearings, the future of the refinery now depends on resolving the conflict between economic development and community concerns.
