Nigerian billionaire Aliko Dangote is exploring the possibility of constructing a massive oil refinery in Kenya, mirroring his successful project in Nigeria. The proposed facility would have a capacity of 650,000 barrels per day and is intended to serve the East African region.
Mombasa Emerges as Preferred Location
In an interview with the Financial Times, Dangote indicated a strong preference for the coastal city of Mombasa. He cited its deep seaport and larger economy as key advantages over other potential sites, such as Tanga in Tanzania. “I’m leaning more towards Mombasa because it has a much larger and deeper port,” Dangote stated.
The announcement follows recent remarks by Kenyan President William Ruto, who disclosed that East African nations were in talks about establishing a regional refinery at the Tanzanian port of Tanga. However, Dangote’s preference for Mombasa may shift the focus of these discussions.
Kenya’s Economic Appeal
Dangote highlighted Kenya’s larger market size as a decisive factor. “Kenyans consume more. It’s a bigger economy,” he noted. The project, however, hinges on the support of President Ruto. “The ball is in the hands of President Ruto. Whatever President Ruto says is what I’ll do,” Dangote added.
The proposed refinery is expected to require an investment of between $15 billion and $17 billion. It would significantly reduce East Africa’s complete dependence on imported refined petroleum products, which currently come mainly from the Middle East. This reliance has exposed the region to supply disruptions and price volatility, especially amid geopolitical tensions.
Regional Collaboration Essential
Speaking at an infrastructure summit in Nairobi, Dangote expressed willingness to replicate his Nigerian refinery model in East Africa, provided regional governments offer the necessary backing and cooperation. He emphasized that strong political commitment and regional collaboration are essential for the project’s success.
The refinery could be delivered within four to five years after all agreements are concluded, according to Dangote. His fortune is estimated at $33.2 billion, and he has a track record of large-scale industrial projects across Africa.
Broader Energy Ambitions
Beyond the refinery, Dangote is preparing to launch a 20,000-megawatt electricity project aimed at transforming Nigeria’s power industry. He is also increasing investments in fertiliser production and other major infrastructure initiatives across the continent.
The proposed Kenyan refinery would be modeled after the Dangote Refinery in Nigeria, which is one of the world’s largest single-train refineries. If realized, it would mark a significant step toward energy self-sufficiency in East Africa.
