Dangote’s Kenya refinery plan faces environmental pushback

Environmental campaign group Greenpeace Africa has raised concerns over Aliko Dangote’s proposed oil refinery in Kenya, warning that the multibillion-dollar project could damage one of East Africa’s most sensitive coastal ecosystems.

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According to Bloomberg reports, the group is calling on Kenyan authorities to suspend approvals for the planned 700,000-barrel-a-day refinery in Lamu until an independent Environmental and Social Impact Assessment is completed and local communities are fully consulted.

“Lamu’s mangroves, coral reefs and seagrass beds are not expendable. They support fisheries, livelihoods and coastal protection,” Greenpeace Africa said in a statement released a week after Dangote confirmed Lamu as the preferred location for the refinery.

The environmental organisation warned that a refinery of such scale could lead to habitat destruction, marine pollution, oil spills, and poor air quality.

“A mega refinery of this scale brings habitat destruction, marine degradation, oil spill risk and dangerous air pollution,” it said.

The Dangote Group declined to comment on Greenpeace’s concerns.

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The proposed refinery, expected to cost as much as $17 billion, would be one of the largest in Africa. Supporters say it could transform Kenya into a fuel refining hub, reduce dependence on imported petroleum products and strengthen regional energy security.

William Ruto, Kenya’s President, is among officials who have welcomed the investment, saying it has the potential to make the country self sufficient in fuel production while creating jobs and supporting industrial growth.

The project is also expected to strengthen the Lamu Port South Sudan Ethiopia Transport Corridor, a long planned regional infrastructure network linking Kenya’s coast with neighbouring countries through ports, rail lines, highways and oil pipelines.

“The public has always been aware that at one time there will be this kind of project. We have always been ready,” Stephen Ikua, director general of the LAPSSET Corridor Development Authority, said on Monday.

The proposed site, however, lies in one of Kenya’s most environmentally and culturally significant regions. Lamu is home to the oldest and best preserved Swahili settlement in East Africa and was recognised as a UNESCO World Heritage Site in 2001. The archipelago is also surrounded by protected marine areas that support rich biodiversity and coastal livelihoods.

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The region has previously been at the centre of disputes over large energy projects. In 2024, Kenya’s High Court blocked plans for a proposed $2 billion coal fired power plant in Lamu after ruling that the project had failed to meet public participation requirements, bringing a six year legal battle to an end.

Greenpeace said the refinery should not move forward until environmental studies are independently reviewed and affected communities are given a meaningful opportunity to participate in the decision making process.