Nigerian billionaire Aliko Dangote has signalled a clear preference for Kenya’s port city of Mombasa as the site of a proposed 650,000-barrel-per-day oil refinery in East Africa — a mega energy investment estimated at between $15 billion and $17 billion that could fundamentally reshape the region’s fuel supply landscape.
Speaking during an interview in Nairobi, Dangote said he now favours Mombasa over Tanzania’s Tanga port, which had previously been mooted as a potential site. His reasoning was direct: ‘Mombasa has a much larger, deeper port. Kenyans consume more; it’s a bigger economy.’ He made equally clear that the final decision rests with Kenya’s political leadership: ‘The ball is in the hands of President Ruto. Whatever President Ruto says is what I’ll do.’
East Africa imports nearly all of its refined petroleum products, primarily from the Middle East, leaving the region exposed to global price volatility and supply disruptions. A refinery of this scale — mirroring the 650,000-bpd capacity of Dangote’s Lagos facility in Nigeria — would significantly reduce that vulnerability and reorient the region’s fuel supply chain toward domestic production.
Kenya’s Port of Mombasa already functions as a major regional petroleum hub, supplying landlocked countries including Uganda, Rwanda and South Sudan through established pipeline and road infrastructure. Locating a refinery there would leverage existing logistics while expanding regional supply reach.
Dangote set out his conditions for moving quickly: suitable land allocation, access to regional financing, and import protection from discounted fuel 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 disclosed plans to expand his Lagos refinery to more than 1.4 million bpd within the next 30 months — a capacity level that would make the Dangote refining complex a genuine price-setter in Atlantic basin fuel markets.
No formal agreement has yet been signed with the Kenyan government, and President Ruto has not publicly responded to the proposal. Site selection, financing structures, and trade protection arrangements remain under discussion.
Source: angolanminingoilandgas.com