Nigerian billionaire Aliko Dangote is advancing plans to construct a massive oil refinery in Kenya, with a proposed capacity of 650,000 barrels per day. The project, estimated to cost between $15 billion and $17 billion, has received a significant boost following discussions with Kenyan President William Ruto.
Preferred Location in Mombasa
In an interview with the Financial Times, Dangote confirmed that he is leaning towards Mombasa as the preferred site for the refinery. He cited the city's deeper and larger port compared to Tanzania's Tanga, which was previously under consideration. "I'm leaning more towards Mombasa because Mombasa has a much larger, deeper port," he said.
Why Kenya Over Tanzania
Dangote noted that Kenya's larger fuel market influenced the decision. "Kenyans consume more. It's a bigger economy," he explained, adding that crude oil for the refinery could be transported by ship, eliminating the need for a pipeline from Ugandan oilfields.
For the project to proceed, Dangote emphasized the need for land allocation, financing support from East African partners, and regulatory protection against fuel dumping from global suppliers such as Russia and India. "There is no refinery in the world that can survive without that protection," he stated.
Presidential Support and Summit Discussions
President Bola Tinubu of Nigeria is currently in Nairobi for the Africa-France Summit, co-chaired by French President Emmanuel Macron and President Ruto. The summit focuses on energy transition, green industrialisation, digital transformation, and reforms to global financial systems. Tinubu is expected to support private sector-led expansion initiatives, including Dangote's proposed Kenyan refinery, aligning with broader efforts to deepen Africa's industrial base.
The summit, themed "Africa Forward: Africa-France Partnerships for Innovation and Growth," provides a platform for leaders to discuss infrastructure development, youth empowerment, and cross-border investment.
Dangote Refinery Clarifies IPO Reports
In related news, Dangote Petroleum Refinery and Petrochemicals (DPRP) dismissed recent media reports suggesting an Initial Public Offering (IPO). In a statement released on March 26, the company described the circulating information as unauthorised and unverified, noting that it had taken note of "recent circulation of unauthorised information across various media and social platforms."
