Kenyan court pauses construction of $16bn Dangote refinery

A Kenyan court ordered construction to be paused on Aliko Dangote’s $16 billion oil refinery in the East African nation, after a group of petitioners filed a case opposing the project.

Judge Jane Onyango ordered that “the status quo prevailing” be maintained in the Lamu area on Kenya’s northeastern coast, where the ambitious project is to be built. The court will provide further directions on the case on October 14, according to the order, which was issued on Friday.

The ruling means that no construction of the project should begin until the court meets on October 14, George Wakahiu, a lawyer representing the local opponents, said by phone.

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Groundbreaking for the project, which is designed to cut eastern Africa’s reliance on imported refined fuel, is planned for September 30.

The 133 petitioners say they are farmers and local inhabitants of the Lamu area who stand to be deprived of their property rights if the refinery is allowed to proceed.

The Dangote refinery project entails “forceful eviction of the plaintiffs from their lands, damage and destruction of their properties and yet there is no resettlement plan for them,” according to the petitioners. Dangote and the Kenyan authorities have yet to comply with the nation’s environmental code that requires “a mandatory environmental impact assessment be done before the implementation of any major project,” they said.

The refinery also fails to comply with Kenya’s constitution, “which requires that the necessary public participation” be conducted, according to the court filings.

Dangote Petroleum Refinery and Petrochemicals Fze spokesman didn’t respond to requests for comment sent by text message outside normal business hours on Monday.

The legal hurdle risks delaying the facility, whose importance has grown since the Iran war closed the Strait of Hormuz, a key artery for global oil supplies, and sent fuel prices sharply higher.

The planned refinery is part of a multibillion-dollar infrastructure plan known as the Lamu Port-South Sudan-Ethiopia Transport corridor that includes railways, pipelines, a power plant, roads and airports.

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