Kenya has emerged as the leading destination for Nigerian billionaire Aliko Dangote proposed 650,000-barrel-per-day oil refinery project in East Africa, a development that could significantly reshape the region energy landscape and industrial growth.
According to an interview published by Financial Times, Dangote said he is increasingly leaning toward Kenya coastal city of Mombasa as the preferred location for the refinery due to its strategic infrastructure and market potential.
“I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port,” Dangote said in the interview.
The proposed refinery would mirror the scale of the massive Dangote Refinery in Lagos, Nigeria, which is currently Africa largest oil refinery with a processing capacity of 650,000 barrels per day.
Dangote remarks come weeks after President William Ruto said East African nations were discussing plans to establish a regional oil refinery at Tanzania Tanga port.
However, Dangote indicated that Kenya currently holds a stronger advantage because of its larger economy, growing fuel demand and superior port infrastructure.
“Kenyans consume more. It’s a bigger economy,” he said.
Mombasa is East Africa busiest seaport and serves as a key trade gateway for countries including Uganda, Rwanda, South Sudan and parts of the Democratic Republic of Congo. Analysts say the port deep-water capabilities and established logistics network make it attractive for large-scale industrial investments.
Multi-billion-dollar refinery investment
Dangote also emphasized that the final decision would depend heavily on the Kenya government position and regional support.
“The ball is in the hands of President Ruto. Whatever President Ruto says is what I’ll do,” he added.
The Kenya government has recently intensified efforts to position the country as a regional energy and manufacturing hub through investments in infrastructure, transport and industrial parks.
The refinery project is expected to cost between USD15 billion and USD17 billion, making it one of the largest industrial investments ever proposed in East Africa.
Industry experts say such a facility could transform the region petroleum supply chain by reducing dependence on imported refined fuel products from the Middle East and other international markets.
East African countries currently import nearly all refined petroleum products, exposing the region to global supply disruptions, fluctuating prices and foreign exchange pressures.
A regional refinery could lower transportation costs, improve fuel security and stimulate downstream industries including petrochemicals, plastics, fertilizers and manufacturing.
The project would also create thousands of direct and indirect jobs during construction and operation phases.
According to energy analysts, Kenya relatively advanced infrastructure, stable financial sector and expanding consumer market strengthen its attractiveness for investors seeking large-scale industrial projects.
Dangote first hinted at plans for an East African refinery during an infrastructure summit held in Nairobi last month. Speaking at the event, he said replicating his Nigerian refinery model in East Africa would require strong cooperation from governments across the region.
The billionaire businessman noted that Africa still spends billions of dollars annually importing refined petroleum despite being rich in crude oil resources.
Analysts believe a refinery located in Kenya could serve multiple East African economies and strengthen regional trade under the African Continental Free Trade Area framework.
The proposal also aligns with broader African efforts to increase value addition, industrialization and energy independence.
Dangote Industries has become one of Africa most influential conglomerates with interests spanning cement, sugar, fertilizers and oil refining. Its Lagos refinery began operations after years of delays and is expected to significantly reduce Nigeria reliance on imported fuel.
While Kenya appears to be leading the race, Tanzania remains a strong contender because of its strategic location and growing infrastructure investments around Tanga port.
Regional governments are increasingly competing to attract large industrial projects capable of accelerating economic growth and creating employment opportunities.
Energy economists say the final decision could influence trade patterns, fuel pricing and industrial competitiveness across East Africa for decades.
If the refinery is eventually established in Mombasa, Kenya would strengthen its position as a regional logistics and energy hub while potentially reducing fuel import dependency across neighboring countries.
The discussions are still at an early stage, but Dangote latest comments have already heightened interest among investors, policymakers and regional business leaders watching the future of East Africa energy sector.
