Ruto backs Dangote Lamu Refinery as residents fight over land compensation

President William Ruto has defended the planned Dangote East Africa Oil Refinery in Lamu, promising an open ownership structure even as residents claiming the project has encroached on their land seek compensation through the courts.

Ruto said the Government would take a stake in the Sh2 trillion-plus refinery, while ordinary Kenyans would have an opportunity to acquire shares through the Nairobi Securities Exchange.

“The ownership and operations of the Dangote East Africa Oil Refinery, which we will launch tomorrow in Lamu, will be open and transparent,” Ruto said in a statement.

He also warned against attempts to frustrate foreign investors, saying the Government would not allow “conmen and profiteers” to sabotage genuine investments.

The President’s remarks came a day before the planned groundbreaking ceremony in Lamu, with the project already facing a legal challenge from residents of Magogoni and Chandavai who say their land rights and compensation claims remain unresolved.

A group of 133 residents has moved to the Malindi Environment and Lands Court seeking protection of land they say their families have occupied, cultivated and developed for generations.

The case, E129 of 2026, was filed by Salim Tima Swaleh and 132 others against the Office of the President, the Ministry of Defence, the Ministry of Lands, the Attorney-General, the National Land Commission, LAPSSET Corridor Development Authority, the Lamu County Government and Dangote Industries.

The residents claim they are the legitimate owners of the disputed land and accuse authorities of failing to compensate them before development activities began.

They say some homes, crops, trees and other property have been affected, while compensation has allegedly been directed to people they claim are not the legitimate landowners.

Through their lawyer, George Wakahiu, the residents argue that acquiring their land without prior notice or compensation violated their constitutional rights.

The residents have said they support the refinery project, but want their land rights and compensation claims resolved before construction proceeds.

Their position was reinforced by demonstrations in Malindi, where affected families called for compensation and questioned why they had not been included in the process despite the planned launch.

The legal challenge has not stopped Wednesday’s planned groundbreaking.

Justice Jane Onyango of the Malindi Environment and Land Court declined to certify the application as urgent and did not issue an order stopping the refinery’s groundbreaking.

However, the court directed parties to maintain the prevailing status quo on LR No. 13061, the disputed parcel in the Hindi/Manda Magogoni area, until October 14, when the case will be heard inter partes. The respondents were given 14 days to file their responses.

The court order therefore leaves the planned September 30 ceremony intact while the specific land dispute remains before the court.

Dangote has also confirmed that the court decision will not disrupt the official groundbreaking, although it could affect activities on the disputed site.

The proposed refinery is expected to have a capacity of 700,000 barrels of crude oil per day and is being presented by the Government as a major investment in Kenya’s energy sector and a potential source of employment and regional petroleum supplies.

Ruto has maintained that the project will bring major economic opportunities to the country, while his latest statement sought to assure Kenyans that ownership and operations would be transparent.

But for the affected Lamu families, the immediate issue remains land.

Their court case puts a human dimension to the multi-billion-shilling investment: while the Government prepares to welcome one of the country’s biggest proposed industrial projects, families living on or claiming the disputed land are demanding that their rights be recognised and compensation settled.

The court is expected to hear the dispute on October 14, when the Government agencies and other respondents will have an opportunity to respond to the residents’ claims.