BUSINESS &ECOMONY
DANGOTE SAYS KENYA REFINERY PROJECT WILL OVERCOME LEGAL CHALLENGES
Dangote Group President, Aliko Dangote, has said his planned refinery project in Kenya will overcome the legal challenges surrounding the proposed facility in Lamu County.
Dangote spoke on Tuesday during an investor engagement in Nairobi organised as part of the Dangote Petroleum Refinery’s initial public offering.
His comments followed a Kenyan court order directing that the status quo be maintained at the proposed refinery site pending further proceedings.
The order was issued after farmers and residents of Chandavai in Lamu County petitioned the court, alleging forced eviction and destruction of their properties. They also raised concerns about environmental requirements and public participation in the project.
Dangote described the legal challenge as part of the difficulties that can arise when carrying out major projects in Africa. He said he was aware of those behind the legal action and that his company was prepared to address the issues.
The Malindi Environment and Land Court is expected to give further directions on October 14.
Despite the court order, Dangote Group said the planned groundbreaking ceremony for the refinery had not been cancelled, although activities at the site could be affected by the court proceedings.
The proposed refinery is scheduled to be officially launched on Wednesday and is expected to have a capacity of 700,000 barrels per day. Dangote Group is expected to hold a 70 per cent stake, while regional governments, including Kenya and Rwanda, will hold the remaining interest.
The project is intended to supply refined petroleum products to the East African market.
Kenyan President William Ruto had earlier said his government was accelerating administrative processes for the project. He also said the government had secured land for the refinery and was working to remove bureaucratic delays ahead of construction.
The Kenyan President made the remarks during a visit to the Dangote Petroleum Refinery in Lekki, Lagos, ahead of the planned September 30 groundbreaking ceremony in Lamu.