Dangote Eyes Kenya for Next Oil Refinery

Nigerian billionaire Aliko Dangote is evaluating Kenya as a potential location for a new 650,000-barrel-a-day oil refinery in East Africa, according to a report published Sunday. Dangote cited Mombasa's larger, deeper port and Kenya's larger economy as factors favoring the location over Tanzania's Tanga port. This development follows discussions among East African nations regarding a joint regional refinery project, which Kenyan President William Ruto mentioned last month.

Dangote indicated that the final decision rests with President Ruto, stating, “Whatever President Ruto says is what I’ll do.” The estimated cost for constructing such a refinery ranges from $15 billion to $17 billion. East Africa currently relies entirely on imported refined petroleum products, primarily from the Middle East, making the region susceptible to supply disruptions and price volatility.

During an infrastructure summit in Nairobi last month, Dangote expressed his willingness to replicate his Nigerian refinery model in East Africa, provided regional governments offer support. The proposed refinery aims to enhance energy security and reduce the region's dependence on external refined fuel sources.