Aliko Dangote is considering Kenya’s port city of Mombasa as the preferred location for a proposed 650,000-barrel-per-day oil refinery in East Africa, shifting attention from an earlier proposal linked to Tanzania’s Tanga port.
The Nigerian billionaire told the Financial Times that he was “leaning more towards Mombasa” because of its larger and deeper port. He also said Kenya has a bigger economy and higher fuel consumption than Tanzania, making it a stronger commercial base for such a project. The refinery is estimated to cost between $15 billion and $17 billion.
The plan follows a regional discussion in April, when East African leaders, including Kenya’s President William Ruto, discussed a joint refinery project that could reduce the region’s dependence on imported petroleum products. Reuters reported that Dangote said he could replicate his 650,000-barrel-per-day Nigerian refinery in East Africa if regional governments supported the initiative.
The Tanzania angle became complicated after earlier reports suggested the refinery could be located in Tanga. Bloomberg reported in April that Dangote had pledged to help East African countries build a refinery in Tanzania, but later reporting said Tanzania’s President Samia Suluhu Hassan questioned the way the proposal was announced without full consultation.
Dangote has made clear that the project is not yet a final investment decision. He said the “ball is in the hands” of President Ruto and that government support would be decisive. Key requirements include land, financing structure, policy backing and protection against cheaper imported fuel from major exporters such as Russia and India.
The proposed refinery would match the size of Dangote’s Lagos refinery, which has a capacity of 650,000 barrels per day and is now central to Nigeria’s attempt to reduce reliance on imported refined fuel. The Lagos project was commissioned in 2023 and began operations afterward, but it also faced years of delays, cost increases, crude supply disputes and technical challenges.
For East Africa, the economic argument is strong. The region imports refined petroleum products and remains exposed to external supply disruptions, currency pressures and global price swings. A refinery in Mombasa could serve Kenya, Uganda, Rwanda, Burundi, South Sudan, parts of eastern Democratic Republic of Congo and other neighbouring markets.
However, the project would require more than a public declaration. A refinery of this scale would need long-term crude supply agreements, regional purchase commitments, environmental approvals, port and pipeline infrastructure, financing partners and clear government guarantees. Without these, the proposal remains an ambition rather than a confirmed construction project.
The real fact is that Dangote is actively considering Kenya, especially Mombasa, for a major East African refinery, but no final agreement has been publicly confirmed. Tanzania was previously discussed, but Kenya now appears to be the stronger option based on Dangote’s own comments about port capacity, market size and government support.
📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters News | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews
Add comment
Comments