Key Takeaways

• Dangote favours Mombasa over Tanzania’s Tanga port
• The refinery could cost up to $17 billion
• Kenya’s president holds the final say

Nigerian billionaire Aliko Dangote is considering Kenya as the location for a proposed 650,000-barrel-per-day oil refinery in East Africa.

The Financial Times reported the development on Sunday, citing a direct interview with Dangote in Nairobi, Kenya. Dangote said he favours the port city of Mombasa over Tanzania’s Tanga port, which had previously been discussed as a possible site.

East Africa currently imports all of its refined petroleum products, mainly from the Middle East, leaving the region exposed to price shocks.

The Iran war of early 2026 showed how quickly that exposure can translate into economic pain for ordinary consumers. Dangote said the final decision 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 project of rare scale for the continent

The proposed refinery would rank among the largest single private energy investments ever made in Africa. Dangote estimated the project would cost between $15 billion and $17 billion to build.

If completed at the same capacity as his Lagos facility, which processes 650,000 barrels of crude per day.

Kenya’s existing petroleum infrastructure in Mombasa already serves landlocked neighbours including Uganda, Rwanda and South Sudan through established pipeline networks.

A refinery of this scale would significantly alter East Africa’s energy supply structure.

Why Mombasa and not Tanga

On his part, Kenyan President Ruto said last month that East African countries were in talks over a joint refinery at Tanzania’s Tanga port, modelled on the Dangote operation in Nigeria.

Dangote’s preference, however, shifted toward Kenya. “I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port,” he said.

He also pointed to Kenya’s stronger fuel demand. “Kenyans consume more. It’s a bigger economy,” he added.

Tanzania’s president has since raised concerns with Ruto over the announcement, saying she was not consulted before the Tanga proposal was made public.

What Dangote needs before signing

Dangote said he is willing to move quickly if the right conditions are met.

He told the publication that Kenya would need to provide land, secure regional financing, and protect the facility from cheap 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 more than double his Lagos refinery’s capacity to 1.4 million barrels per day within 30 months.

“We’ll be price movers in the market,” he said.

No formal agreement has been signed between Dangote and the Kenyan government. President Ruto has not publicly responded to Dangote’s latest comments.

Site selection, financing arrangements, and import protection terms are all yet to be finalised.