The Dangote Group has reacted to a Kenyan court order restricting activities on a disputed site in Lamu County where the company plans to construct a $16 billion oil refinery.
The company said the order issued by the Malindi Environment and Land Court could affect certain activities at the proposed project site but would not stop the planned groundbreaking ceremony.
The court directed all parties involved in the dispute to maintain the existing situation on the land pending the hearing of the case scheduled for October 14.
The legal action was filed by 133 residents of Chandavai in Lamu County, who are challenging the proposed use of the land for the refinery.
The residents reportedly claim that the disputed property belongs to their ancestors and has been occupied and used for farming by their families for generations.
Reacting to the development on Tuesday, the Dangote Group acknowledged that some activities at the site could be affected by the court order, which prohibits the parties from undertaking activities on the disputed property before the matter is heard.
Speaking at an investor event in Nairobi, Dangote Group President and Chief Executive Officer, Aliko Dangote, also commented on the legal dispute and expressed confidence in the future of the refinery project.
Dangote described the court action as one of the challenges that can arise during the development of major projects in Africa. He maintained that the company was prepared to address opposition to the project.
According to Dangote, the court order had not, at that stage, stopped the groundbreaking ceremony for the refinery, although activities at the disputed site could be affected until the October 14 hearing.
He said the company was accustomed to dealing with challenges surrounding major projects and remained prepared to respond to attempts to disrupt the development.
The proposed Lamu refinery is a major investment by the Dangote Group in Kenya and is expected to become a significant component of the country’s planned energy infrastructure.