The High Court in Malindi has allowed the government and Nigerian billionaire Aliko Dangote to proceed with plans to construct the proposed Dangote Lamu Oil Refinery, lifting an interim restriction that had halted the development.
In a preliminary ruling delivered on Wednesday, October 14, Justice Jane Onyango declined to issue fresh interim orders requiring the parties to maintain the status quo, effectively allowing construction activities to proceed as a legal dispute over land ownership and environmental compliance continues.
The decision clears a significant legal hurdle for the proposed 700,000-barrel-per-day refinery, which is expected to transform Kenya's petroleum industry but has faced opposition from residents who claim the project threatens their property rights.
The petition was filed by 133 residents who have challenged the development, arguing that the project could interfere with their land rights and that its proponents have not demonstrated compliance with the applicable environmental regulations.
The proposed refinery is expected to occupy between 7,000 and 10,000 acres, including areas around the contested Magogoni villages, where questions have emerged over land ownership and the rights of people living within the project area.
However, Justice Onyango ruled that the petitioners had failed to comply with earlier court directions requiring them to serve the respondents with the necessary court documents.
The judge noted that Dangote and the government agencies named in the case had not been properly served in accordance with the directions issued on October 1, 2026.
"You did not serve the respondents as per the October 1, 2026, directions. Serve him and all parties within 14 days before the hearing. Leave is granted to amend the petition within seven days," said Justice Onyango.
The court directed the petitioners to serve Dangote and all the other parties within 14 days ahead of the hearing. It also granted them seven days to amend their petition to address the issues identified during the proceedings.
In addition to the service requirements, the court found that the residents had cited the wrong parcel of land in their petition.
Justice Onyango consequently allowed them to amend the filing to identify the correct property, giving the petitioners an opportunity to rectify the error as the legal proceedings continue.
The latest ruling follows an earlier decision by the Malindi Environment and Land Court on September 25, when an interim order was issued directing that the status quo be maintained. That order had temporarily restricted developments as the court considered the dispute surrounding the proposed refinery.
Wednesday's decision, however, means the project is no longer protected by a fresh interim status quo order arising from the latest proceedings, allowing the developers to continue with their plans while the case remains unresolved.
The dispute has also drawn attention to the government's position on the ownership of the land earmarked for the development. Lands Cabinet Secretary Alice Wahome has maintained that the largest portion of the approximately 7,000-acre project site is public land legally owned by the government.
Wahome clarified that the presence of people living on sections of the land does not automatically establish private ownership, maintaining that occupation of the property should not be confused with legal ownership.
The position comes amid concerns raised by residents over the potential impact of the project on communities living within or near the proposed development area.
The court is expected to mention the matter again on November 24, when the parties' compliance with the court's directions and the progress of the case may come under consideration.
Meanwhile, preparations for the refinery have continued following the formal launch of construction on September 30. The project, estimated to cost Ksh2.2 trillion, is expected to take approximately 40 months to complete, with commissioning targeted for 2030.
Once operational, the refinery is designed to process up to 700,000 barrels of crude oil per day, making it a major proposed addition to Kenya's petroleum infrastructure.
However, the project's progress remains subject to the outcome of the ongoing legal dispute, particularly the questions surrounding land ownership, the rights of affected residents and compliance with environmental requirements.
