Dangote Blames Marketers, IOCs for Lamu Refinery Protests

Aliko Dangote has blamed local petroleum marketers and international oil companies for protests surrounding his proposed $16 billion oil refinery in Lamu, Kenya.

Dangote made the allegation as he defended the project amid opposition from some residents over land acquisition and compensation.

The proposed refinery is expected to have a processing capacity of 700,000 barrels per day when completed in 2030, making it one of the largest planned refining projects in East Africa.

Dangote and Kenyan President William Ruto performed the groundbreaking ceremony for the project on Wednesday, despite a court order temporarily halting construction activities over a land dispute.

Speaking during an interview with the BBC’s Focus on Africa programme, Dangote dismissed the protests as being driven by commercial interests rather than genuine opposition to the development.

He said the project had attracted resistance from what he described as “local marketers and international players” whose existing businesses could be affected by the refinery.

Dangote also rejected claims that his company had taken more land than required for the project. He said the company was using only the portion of land allocated to it by the Kenyan government.

The refinery is expected to serve markets across East Africa and reduce the region’s dependence on imported refined petroleum products.

However, some residents of Chandavai, where the project is located, have challenged the land acquisition process in court. The residents claim the land forms part of their ancestral territory and have raised concerns about compensation, resettlement and the potential impact of the project on their livelihoods.

Kenya’s Environment and Land Court has ordered the preservation of the existing situation at the site pending further proceedings. A hearing has been scheduled for October 14.

Environmental groups have also raised concerns about the project’s possible impact on the surrounding environment, including the area around Lamu Old Town, a UNESCO World Heritage site.

Dangote, however, said the legal and community opposition would not stop the refinery from proceeding.

The project is expected to be completed by 2030 and would include supporting infrastructure and a power plant as part of efforts to establish an integrated energy and industrial complex.

Kenyan authorities have backed the project, describing it as a major investment capable of strengthening the country’s energy security and attracting further industrial development.

Dangote has also offered regional governments a combined 30 per cent stake in the refinery, which is expected to serve a market stretching across several East African countries.