A Kenyan court has ordered parties to maintain the status quo over land earmarked for Dangote Group’s proposed 700,000-barrel-per-day refinery in Lamu, just a day before the planned groundbreaking ceremony.

The Malindi Environment and Land Court issued the order after 133 residents of Chandavai challenged the development, claiming that the land is ancestral property occupied and used by their families for generations.

The court directed that the existing situation on the disputed parcel be maintained pending further proceedings scheduled for October 14.

However, the ruling did not stop the planned groundbreaking ceremony for the refinery on Wednesday.

Dangote Group said the ceremony would go ahead, although activities at the project site could be affected by the court’s order.

“The court has not halted the groundbreaking ceremony of the refinery at this stage. However, activities at the site may be affected by the ruling as both parties are required not to carry activities until the case is heard on 14th October.”

The residents’ legal challenge centres on their claim that the land targeted for the multibillion-dollar project has been occupied, cultivated and developed by their families for years.

They allege that homes, crops, trees and other property on parts of the land have been affected by preparations for the project. They are also challenging aspects of the compulsory acquisition process, including claims that affected occupants were not adequately recognised or compensated.

The proposed refinery, which is expected to cost between $15 billion and $16 billion, is designed to process up to 700,000 barrels of crude oil per day.

The project is part of Kenya’s wider plan to develop Lamu into an energy and logistics hub, with the refinery expected to process crude from Kenya and other African producers.

The latest development comes as equipment for the project continues to arrive at Lamu Port. About 2,930 metric tonnes of refinery equipment were delivered to the port this week.

President William Ruto is expected to attend the September 30 groundbreaking ceremony, despite the pending land dispute.

The court is expected to hear the matter between the parties on October 14, when the respondents will have an opportunity to respond to the residents’ claims.