Nigerian industrialist Aliko Dangote is considering Kenya as the preferred location for a proposed large scale oil refinery in East Africa, according to reports published by the Financial Times and confirmed through reporting by Reuters.
Dangote, whose Lagos based refinery began operations in Nigeria in recent years, indicated that the Kenyan coastal city of Mombasa currently appears favourable due to its port infrastructure and economic positioning within the region. Speaking to the Financial Times, he reportedly stated that Mombasa possesses a larger and deeper port than Tanzania’s Tanga, another location under regional consideration.
The proposed refinery is expected to process approximately 650,000 barrels of crude oil per day, mirroring the capacity of the existing Dangote refinery in Nigeria. According to the reports, the estimated investment could range between US$15 billion and US$17 billion, placing the project among the largest industrial infrastructure developments contemplated on the African continent in recent years.
The development follows earlier comments made by Kenyan President William Ruto, who disclosed in April that East African states had been engaged in discussions regarding a shared regional refinery project centred around Tanzania’s Tanga port. Those discussions were framed within broader regional ambitions to strengthen energy resilience and reduce dependence on imported refined petroleum products.
At present, East African economies import the majority of their refined fuel products, largely from the Middle East and other international suppliers. This reliance has exposed regional markets to fluctuations in global supply chains and price volatility linked to geopolitical tensions and disruptions in international shipping routes.
Analysts across the continent have increasingly argued that expanding refining capacity within Africa could strengthen regional industrialisation efforts, improve energy sovereignty, and retain greater economic value within African economies. The African Continental Free Trade Area has also contributed to renewed conversations around cross border industrial infrastructure and integrated regional markets.
Dangote reportedly acknowledged the political and diplomatic dimensions surrounding the project, noting that the final direction would depend significantly on the position taken by the Kenyan government. His remarks reflect the growing importance of state and private sector collaboration in large scale African infrastructure initiatives.
Mombasa remains one of East Africa’s most strategically significant maritime gateways, serving Kenya as well as several neighbouring landlocked countries including Uganda, Rwanda, Burundi, and parts of the Democratic Republic of Congo. Tanzania’s Tanga port, meanwhile, has also emerged as an increasingly important logistics and energy corridor linked to regional pipeline and trade ambitions.
Observers note that whichever location is ultimately selected, the proposed refinery would likely influence regional supply chains, employment patterns, transport infrastructure, and manufacturing ecosystems across East and Southern Africa. The project could also deepen debates around sustainable industrialisation, energy transition planning, and the role of African capital in reshaping continental development priorities.
While discussions remain at a preliminary stage, the proposal reflects a broader continental shift toward strategic infrastructure investments led increasingly by African institutions, governments, and entrepreneurs. In this context, the refinery debate extends beyond energy production and enters wider conversations about economic self determination, regional integration, and the future architecture of African trade.
