Dangote Considers Mombasa for 650,000 bpd Refinery as Kenya Competes with Tanzania for Mega Energy Project
Nigerian billionaire Aliko Dangote is considering Kenya as the preferred location for a proposed 650,000 barrels-per-day oil refinery in East Africa, a landmark project that could reshape the region’s fuel supply landscape.
According to a Financial Times report, Dangote made the remarks during an interview in Nairobi, stating that he now favours Kenya’s port city of Mombasa over Tanzania’s Tanga port, which had previously been discussed as a potential site.
East Africa currently imports nearly all of its refined petroleum products, primarily from the Middle East, leaving the region vulnerable to global price volatility and supply disruptions.
This exposure was highlighted during the 2026 Iran conflict, which caused sharp fluctuations in global energy markets and increased fuel costs across importing nations.
Dangote said the final decision on the project location ultimately rests with Kenyan President William Ruto. “The ball is in the hands of President Ruto,” he said. “Whatever President Ruto says is what I’ll do.”
A Landmark Energy Investment for Africa
If realised, the proposed refinery would rank among the largest private energy investments on the African continent, with estimated costs ranging between $15 billion and $17 billion.
The project would mirror the scale of Dangote’s Lagos refinery in Nigeria, which has a capacity of 650,000 barrels per day and is currently Africa’s largest single-train refinery.
Kenya’s Port of Mombasa already serves as a key regional petroleum hub, supplying landlocked countries such as Uganda, Rwanda, and South Sudan through established pipeline infrastructure.
A refinery of this scale would significantly reshape East Africa’s fuel supply chain and reduce dependence on imported refined products.
Mombasa vs Tanga
Kenyan President William Ruto recently indicated that East African nations were exploring a joint refinery project at Tanzania’s Tanga port, inspired by the Dangote refinery model in Nigeria.
However, Dangote signalled a shift in preference toward Kenya, citing infrastructure and demand considerations. “I’m leaning more towards Mombasa because it has a much larger, deeper port,” he said. “Kenyans consume more; it’s a bigger economy.”
The proposal has also sparked diplomatic sensitivities, with Tanzania’s leadership reportedly expressing concern over discussions around the Tanga site being made without prior consultation.
Conditions for Investment
Dangote said he would proceed quickly if key conditions are met, including allocation of suitable land, access to regional financing, and protection from low-cost fuel imports, particularly from Russia and India.
“There is no refinery in the world that can survive without that protection,” he said. “If we have an agreement, we can start this year.”
He also revealed plans to expand his Lagos refinery to more than 1.4 million barrels per day within the next 30 months, a move that would further strengthen his influence in global fuel markets.
“We’ll be price movers in the market,” he added.
No formal agreement has yet been signed between Dangote and the Kenyan government, and President Ruto has not publicly responded to the latest remarks. Site selection, financing structures, and trade protection measures remain under negotiation.
