Aliko Dangote is considering Kenya as the location for a proposed 650,000 barrels-per-day oil refinery project that could transform fuel supply across East Africa and reduce the region’s dependence on imported refined petroleum products.
According to a report by the Financial Times, Dangote said he is leaning toward Kenya’s coastal city of Mombasa due to its strategic advantages, including a deeper and larger port infrastructure capable of supporting a large-scale refining operation.
“I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port,” Dangote said in the interview.
The proposed refinery is expected to cost between $15 billion and $17 billion if fully developed, making it one of the largest industrial investments in East Africa.
Dangote’s latest comments come weeks after Kenyan President William Ruto disclosed that East African nations were discussing plans for a regional refinery project at Tanzania’s Tanga port modeled after the Dangote Refinery in Lagos.
However, Dangote appeared to favor Kenya over Tanzania, citing Kenya’s larger economy and stronger fuel consumption market.
“Kenyans consume more. It’s a bigger economy,” he said.
The billionaire businessman added that the final direction of the proposed investment would depend largely on the Kenyan government’s position and support for the project.
“The ball is in the hands of President Ruto. Whatever President Ruto says is what I’ll do,” Dangote stated.
The development signals Dangote’s growing ambition to expand his refining footprint beyond Nigeria following the operational launch of the 650,000 barrels-per-day Dangote Refinery in Lagos, currently regarded as Africa’s largest refinery.
Energy analysts said a refinery of such scale in East Africa could significantly alter the region’s energy landscape by reducing reliance on fuel imports from the Middle East and improving supply stability.
East African countries currently import nearly all refined petroleum products consumed within the region, leaving local economies exposed to global oil market volatility, shipping disruptions and geopolitical tensions.
The region has experienced rising concerns over energy security following disruptions linked to the ongoing U.S.-Iran conflict and tensions affecting global crude oil supply routes.
During an infrastructure summit in Nairobi last month, Dangote said he could replicate the Nigerian refinery model in East Africa if governments in the region provide the necessary support and investment environment.
The proposed investment would also deepen economic ties between Nigeria and East Africa while positioning Kenya as a strategic downstream energy hub on the continent.
Industry observers noted that Mombasa’s established port infrastructure, logistics network and access to regional markets could provide Kenya with an advantage in attracting the project ahead of competing locations in Tanzania.
If completed, the refinery could become one of Africa’s largest industrial energy assets outside Nigeria and further strengthen Dangote’s influence in the continent’s oil and gas sector.