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Dangote Says He Is Ready for Court Cases Over Kenya Refinery

Aliko Dangote says his group is prepared to face legal challenges over its planned 700,000-barrel-per-day refinery in Kenya, despite a court order concerning the project site.

Daniel Momodu · · 40
Dangote Says He Is Ready for Court Cases Over Kenya Refinery


President of Dangote Industries Limited, Aliko Dangote, has said his group is prepared to face legal challenges over its planned refinery in Lamu, Kenya, expressing confidence that the project will proceed despite a land dispute.

Dangote made the remarks during a fireside chat at the Nairobi Securities Exchange, where he discussed the group’s planned investments across Africa, the Lamu refinery and plans to expand public ownership of some of its businesses.

A Kenyan court had ordered that the status quo on the land earmarked for the refinery be maintained pending a hearing scheduled for October 14.

The case was filed by 133 residents of Chandavai in Lamu County, who claim that the land is ancestral property on which their families have lived and farmed for generations.

Dangote said his group was familiar with legal and other challenges encountered during its expansion across Africa and would not be deterred by the latest dispute.

He cited an experience in Senegal, where one of the group’s factories was reportedly shut down for a year before the company secured a Supreme Court judgment.

The businessman said the planned Lamu refinery, with a capacity of 700,000 barrels per day, was expected to cost between $15 billion and $16 billion and be completed by 2030.

He said the project had already moved beyond discussions, with construction equipment deployed to the site, adding that the refinery was expected to create significant employment opportunities.

According to Dangote, more than 60,000 people would be required during the project, while businesses in the surrounding communities could also benefit from the investment.

He said Kenya had become an important part of the group’s African expansion strategy, stressing that the company regarded African countries as its home.

Dangote also disclosed plans to list the Lamu refinery on the Nairobi Securities Exchange rather than the Nigerian Exchange, as part of efforts to deepen African capital markets.

He said the group was also willing to reduce its ownership of the refinery to as low as 20 or 25 per cent if more Africans wanted to acquire shares.

Dangote said the company had initially planned to raise $2.5 billion through a private placement and initial public offering, but strong demand prompted the creation of a further $1.6 billion offering.

He said the broader objective was to increase public participation in ownership and give shareholders a greater role in the governance of the businesses.

The Dangote Group had earlier said the Kenyan court order did not halt the planned groundbreaking ceremony but could affect activities at the project site before the October 14 hearing.

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