By Magdalene Wanja - Reporter
Kenya, 11 May 2026 - Kenya could be edging closer to hosting one of Africa’s largest oil refining projects, after reports that Nigerian billionaire Aliko Dangote is considering Mombasa as the site for a massive new refinery.
According to the Financial Times, the proposed facility would have a capacity of about 650,000 barrels per day and could cost between $15 billion and $17 billion. Dangote is quoted saying: “I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port.”
If realised, the project would mark a major shift for East Africa’s energy landscape, where countries currently rely almost entirely on imported refined petroleum products from the Middle East and Asia.
Kenya, the region’s largest economy, imports about 90 percent of its fuel needs, leaving it highly exposed to global price fluctuations and supply disruptions. Petroleum imports cost the country hundreds of billions of shillings annually, with fuel prices directly affecting transport costs, food inflation and industrial production.
A refinery of this scale in Mombasa would therefore not only serve domestic demand but could also position Kenya as a regional fuel hub, supplying neighbouring countries such as Uganda, Rwanda, South Sudan and parts of the Democratic Republic of Congo.
Dangote’s remarks also highlight Kenya’s strategic advantage in regional trade, particularly the Port of Mombasa, which remains one of the busiest gateways into East and Central Africa.
Kenya has previously attempted to develop local refining capacity through the Kenya Petroleum Refineries Limited in Mombasa, but the facility was shut down in 2013 following years of operational challenges and inefficiencies. Since then, the country has depended fully on imported refined fuel despite discovering crude oil in Turkana.
President William Ruto has in recent months supported discussions around regional refining cooperation, including earlier proposals for a shared East African refinery model involving Tanzania’s Tanga port.
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Dangote himself has indicated that political backing will be key to the decision, stating: “The ball is in the hands of President Ruto. Whatever President Ruto says is what I’ll do.”
However, analysts caution that major hurdles remain, including financing, environmental approvals, infrastructure requirements and regional coordination on crude supply.
Still, the proposal underscores growing investor interest in East Africa’s energy sector at a time when countries are seeking to reduce reliance on imported fuel and strengthen industrial capacity.
If approved, the refinery could reshape Kenya’s energy economy and deepen its role as a strategic hub in Africa’s oil supply chain.
Explainer - Kenya in Talks for $17 Billion Dangote Refinery as Energy Ambitions Grow
Aliko Dangote has told the Financial Times that he is ready to build an oil refinery in Mombasa because of its larger and deeper port.