By Barbara Nwaiwu
Africa’s richest businessman, Aliko Dangote, has identified Kenya as the preferred location for a proposed oil refinery project estimated at between $15 billion and $17 billion, citing the country’s stronger economy, higher fuel consumption and strategic port infrastructure.
In an exclusive interview on Sunday with the Financial Times, Dangote said he was leaning towards Mombasa, Kenya’s coastal city, because of its port capacity and logistic advantages.
“I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port,” he said.
According to the report, Dangote also noted that Kenya’s economy and demand for refined petroleum products made it an attractive destination for the investment.
“Kenyans consume more. It’s a bigger economy,” Dangote added, reinforcing the case for locating the refinery in Kenya instead of other East African countries.
The proposed refinery would rank among the largest industrial investments in East Africa if approved and constructed.
Reports indicated that the project would overshadow Uganda’s ongoing partnership with UAE-based Alpha MBM Investments, which is developing a $4 billion refinery in Kabaale, Hoima District, with a planned processing capacity of 60,000 barrels per day and expected operations between late 2029 and early 2030.
The development comes at a time when East and Central Africa currently operate only one refinery, far behind other regions on the continent.
South Africa reportedly has 7 refineries, North Africa 21, and West Africa 14.
Although the planned East African refinery would not match Dangote’s Lagos based 650,000 barrel per day refinery, which is being expanded to 1.4 million barrels per day, the facility is expected to significantly improve fuel supply and energy security across the region.
The refinery discussions also follow earlier talks surrounding a proposed regional refinery project in Tanga, Tanzania.
Dangote had previously pledged support for the Tanzanian refinery initiative, promising that his conglomerate would spearhead the project and complete it within four to five years.
The regional project was expected to process crude oil from neighbouring countries including Kenya, South Sudan and Uganda.
Kenya’s President, William Ruto, confirmed the discussions during the Africa We Build Summit held in Nairobi in April.
“That refinery will process oil from the DRC, Kenya, South Sudan, and Uganda. We will then build a pipeline from Tanga to Mombasa, allowing finished products to move through infrastructure we jointly own with Uganda,” Ruto said.
However, Tanzania’s President, Samia Suluhu Hassan, later expressed surprise over the announcement, saying she had not been consulted before the project was made public.
Dangote’s latest preference for a Kenya focused refinery marks a major shift from the earlier regional collaboration plan championed by East African leaders.
“The ball is in the hands of President Ruto,” Dangote said. “Whatever President Ruto says is what I’ll do,” he added.
Analysts say the refinery, if eventually realised, could reduce East Africa’s dependence on imported fuel products while strengthening regional energy security and industrial development.
The proposal also aligns with Dangote’s broader ambition to expand his conglomerate into a $100 billion enterprise by 2030, including plans to increase refinery production capacity across Africa.
