Dangote Considers Kenya for $17bn East Africa Refinery Project

Dangote Considers Kenya for $17bn East Africa Refinery Project

Africa’s richest man, Aliko Dangote, is considering Kenya as the leading location for a proposed 650,000-barrel-per-day oil refinery in East Africa, in what could become one of the region’s biggest industrial investments. The project, under the Dangote Group, is estimated to cost between $15 billion and $17 billion, according to reports from international outlets including the Financial Times and Reuters.

Dangote said Kenya’s coastal city of Mombasa currently stands out as the most attractive option due to its deep-water port infrastructure, which is essential for handling large volumes of crude oil imports and exporting refined products. He explained that the port’s capacity gives Kenya a strong logistical advantage for a refinery of this scale.

The proposal is unfolding alongside wider regional discussions in East Africa, where governments are also considering developing a joint refinery at Tanzania’s Tanga port. Kenyan President William Ruto has confirmed that East African countries are exploring collaborative energy projects aimed at reducing dependence on imported fuel and strengthening regional energy security.

Dangote, however, noted that Kenya appears to have a stronger economic case for the investment. He pointed out that Kenya’s larger fuel consumption and broader market size make it more attractive for a refinery project of this magnitude.

The businessman also stressed that the final decision will depend heavily on government support and policy direction, particularly from Kenya’s leadership. He indicated that regulatory approvals, investment incentives, and infrastructure readiness would ultimately determine where the refinery is built.

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If completed, the refinery would be one of the largest oil and gas infrastructure projects in East Africa, with a capacity of 650,000 barrels per day and a total cost potentially reaching $17 billion. It would closely mirror the structure of the Lagos-based Dangote refinery, which has already reshaped West Africa’s petroleum supply chain.

East Africa currently depends heavily on imported refined petroleum products, mostly from the Middle East. This reliance has contributed to fuel price volatility and periodic supply disruptions, prompting renewed interest in domestic refining capacity to strengthen energy security.

At an infrastructure summit in Nairobi, Dangote previously expressed readiness to replicate his Nigerian refinery model across Africa, provided governments create an enabling environment. The proposed East African refinery forms part of his broader strategy to expand industrial capacity across the continent and reduce dependence on imported fuel products.

Dangote Considers Kenya for $17bn East Africa Refinery Project