Aliko Dangote eyes Kenya for new $17bn mega refinery
Africa’s wealthiest man, Aliko Dangote, has signaled his intention to expand his industrial empire into East Africa, identifying Kenya as the preferred destination for a massive new oil refinery.
In an interview with the Financial Times published Sunday, the Nigerian billionaire revealed he is considering a 650,000-barrel-a-day facility—a direct replica of the landmark Dangote Refinery in Lagos—to stabilize energy security in the East African region.
Mombasa over Tanga?
While regional discussions previously centered on a joint refinery project in Tanga, Tanzania, Dangote appears to be leaning toward the Kenyan coast.
“I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port,” Dangote told the FT.
Beyond infrastructure, the business mogul cited market dynamics as a deciding factor, noting that Kenya’s economic scale offers a more attractive landscape for such a capital-intensive project. “Kenyans consume more. It’s a bigger economy,” he added.
The $17 billion strategy
The proposed refinery is estimated to cost between $15 billion and $17 billion. The move comes at a critical time for East Africa, which currently relies entirely on imported refined petroleum products, primarily from the Middle East.
This total dependence has left the region’s economies vulnerable to supply shocks and price volatility, issues that have been exacerbated by recent geopolitical tensions in the Middle East.
“The ball is in Ruto’s court”
The project’s fate now seems to rest on political will. Last month, during an infrastructure summit in Nairobi, Dangote told regional leaders he was ready to replicate his Nigerian success in East Africa, provided there is sufficient government backing.
He specifically placed the next move on Kenyan President William Ruto. “The ball is in the hands of President Ruto,” Dangote stated. “Whatever President Ruto says is what I’ll do.”
The potential investment would represent one of the largest private industrial projects in East African history, potentially transforming Kenya into a regional energy hub and mirroring the “Dangote Effect” that has already begun to reshape the Nigerian energy sector.
