A Kenyan court has declined to issue an order stopping the planned groundbreaking and development of Dangote's $2 trillion refinery in Lamu, which is expected to process up to 700,000 barrels of crude oil per day. The Malindi Environment and Land Court ordered that the "status quo" on the disputed land (LR No. 13061) be maintained until an inter partes hearing on October 14, 2026. This ruling comes despite an application by 133 Chandavai residents challenging the project.

The residents claim the land is ancestral property they have occupied for generations, using it for farming, livestock, and establishing homes, mosques, and shrines. They argue that the government unlawfully took over their land without compensation or resettlement and that continued construction would destroy crops, homes, and cultural sites. They are seeking conservatory orders to halt any further construction, excavation, or ground-clearing.

The court's decision means the planned groundbreaking ceremony, expected to be attended by President William Ruto, can proceed on September 30. Heavy equipment for the project, including 2,930 metric tonnes, has already arrived at the Lamu deep seaport. The proposed refinery is part of the broader Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor initiative and is linked to crude oil reserves in Turkana, aiming to process crude from Kenya and other African sources.

The 133 residents have sued multiple entities, including the Office of the President, the Defence Cabinet Secretary, the Lands Principal Secretary, the Attorney General, the National Land Commission, the LAPSSET Corridor Development Authority, the Lamu County Government, Dangote Industries Limited, and two contractor firms. They allege that soil testing began in July 2026 and that a compulsory acquisition process, targeting absentee title holders instead of actual occupants, started in September, flouting legal and constitutional requirements for valuation, public participation, and prior compensation.

While the court did not grant the request to stop the project at this stage, it warned that any disobedience or non-observance of its status quo order would lead to penal consequences. The inter partes hearing on October 14, 2026, will allow the respondents to present their responses to the application.