Litigation Signal #001 — Kenya Makes Coal / Fossil Investment Riskier After 2025 Ruling Against Lamu Coal Project
The judgment confirms a long-standing trend: coal projects in Kenya face high and rising legal and permitting risk, even when backed politically or included in past national energy plans.
On 16 October 2025, Kenya’s Environment and Land Court (Malindi) upheld the decision to revoke the environmental licence for the proposed 1,050 MW Lamu Coal Power Plant. The court found that the project’s Environmental & Social Impact Assessment (ESIA) was inadequate, that public participation fell short of constitutional standards, and that the approval process violated environmental rights under Articles 42 and 69 of the Kenyan Constitution.
The judgment, rooted in the Environment Management and Coordination Act (EMCA) and its EIA regulations, confirms a long-standing trend: coal projects in Kenya face high and rising legal and permitting risk, even when backed politically or included in past national energy plans.
Civil society reacted strongly.
“Justice for Lamu is justice for the planet. This ruling shows that when communities are heard, the law protects both people and nature.”
— Save Lamu“This decision reinforces Kenya’s constitutional commitment to environmental justice, public participation, and the rule of law.”
— Natural Justice
With this ruling, the coal project is effectively halted indefinitely, and a legal precedent is reinforced: fossil projects must withstand intense judicial scrutiny, strong community oversight, and elevated environmental-rights litigation.
The Risk Matrix — Lamu Coal Case (Kenya)
A concise view of how the ruling raises fossil-project risk across key dimensions.
Investor takeaway:
Developers cannot rely on quick or stable approvals for fossil projects under Kenya’s environmental-rights framework.
Investor takeaway:
Litigation risk is structural and persistent. Courts are willing to suspend or cancel fossil projects regardless of political support.
Investor takeaway:
It is now more difficult for coal and similar projects to progress to construction or financing under current legal and societal conditions.
Overall signal
The Lamu coal ruling is a structural signal, not a one-off.
We expect that fossil projects will face stricter scrutiny, will be subject to more litigation, delays, and possible halts.
Read an expert legal opinion on the coal case here.