Dangote Group President, Aliko Dangote, says his company will overcome legal challenges facing its planned oil refinery in Lamu, Kenya.
Dangote spoke during an investor engagement for the Dangote Petroleum Refinery’s initial public offering in Nairobi.
His comments followed a Kenyan court order over the proposed refinery site.
The case involves residents of Chandavai in Lamu County. The residents challenged the project over land rights and environmental concerns.
They also alleged that authorities forcibly evicted some residents and destroyed their properties.
Dangote said the legal dispute would not stop the company from pursuing the refinery project.
He said Dangote Group had faced similar challenges during previous projects in Africa.
The businessman also said the company understood the issues behind the Kenyan case and would address them through the proper legal channels.
The Malindi Environment and Land Court will hear the case on October 14.
The court order requires the parties to maintain the current situation at the project site until the next proceedings.
Dangote Group plans to build the refinery in Lamu with a capacity of 700,000 barrels of crude oil per day.
The company expects the project to serve Kenya and other markets across East Africa.
Dangote Group plans to hold a 70 per cent stake in the refinery.
Kenya and other regional governments have also received opportunities to participate in the project.
The company estimates the refinery will cost between $15 billion and $16 billion.
Dangote Group targets 2030 for the completion of the project.
The court case adds another challenge to the refinery project.
The project also faces questions about land rights, environmental requirements and crude oil supply.
Kenya does not currently produce enough crude oil to meet the needs of a refinery of the proposed size.
The company may therefore need to source crude from other countries.
Despite these challenges, Dangote has maintained that the project remains on course.
The planned refinery forms part of Dangote Group’s wider expansion in Africa’s energy sector.
If completed, the facility could increase regional refining capacity and create another major source of petroleum products for East African markets.
For now, the Kenyan court proceedings remain a key step in determining the next phase of the project.
