Dangote’s planned Kenya refinery faces legal challenge by consumer-rights group

Nigerian billionaire Aliko Dangote’s $16bn oil refinery in Kenya faces another legal challenge, this time from a consumer-rights group alleging that key details about the project ‌have not been made public.

The Consumers Federation of Kenya (COFEK) filed a petition with the Public Private Partnerships Petition Committee, COFEK Secretary General Stephen Mutoro said in a post on X.

It is the second legal hurdle for the 700,000-barrel-per-day (bpd) refinery, after more than 130 residents filed a lawsuit, saying the land in Lamu — where the plant is being built — is their ancestral heritage. A hearing on the case is due on October 14.

COFEK wants any non-compliant approvals set aside for the refinery and reconsidered. It wants details about the government’s plan to take a stake in the refinery to be disclosed, such as the acquisition vehicle, share class and payment ‌terms and evidence that there was public participation, among other things.

When he broke ground to start construction on Wednesday, Dangote shrugged off the land rights claim and expressed confidence the refinery would go ahead, saying: “Anybody who wants to cause trouble, we are ready.”

Dangote is looking to replicate his group’s 700,000 bpd refinery in Nigeria. He has offered regional governments a combined 30% stake in the Lamu refinery, which is scheduled to be completed in 2030. Reuters