By Benadeta Mwaura - Reporter
Kenya, April 24, 2026 - President William Ruto has thrown his weight behind a proposal by Nigerian billionaire Aliko Dangote to build a large-scale oil refinery in East Africa, in what could mark a turning point in the region’s long-standing dependence on imported fuel.
The proposal emerged during the Africa We Build Summit held in Nairobi, where regional leaders and investors converged to discuss infrastructure financing and industrial development.
At the centre of the discussions was a shared concern: despite producing crude oil, Africa continues to import refined petroleum products at a significant cost, leaving economies exposed to global supply shocks and price volatility.
President Ruto framed the refinery project as a strategic necessity for the region, emphasizing its potential to integrate East Africa’s energy resources and reduce reliance on external markets.
“We’re going to have a joint refinery in Tanga to benefit all of us because that refinery is going to take on board the oil from DRC, the oil from Kenya, the oil from South Sudan, and the oil from Uganda,” Ruto said during the summit.
The proposed refinery is expected to be located in Tanga, Tanzania, and would serve multiple countries across the region, positioning itself as a shared infrastructure asset rather than a national project.
Dangote, whose refinery in Nigeria is currently the largest in Africa with a capacity of about 650,000 barrels per day, expressed readiness to replicate a similar facility in East Africa, but on one key condition: political and financial backing from regional governments.
“My commitment today here is that if we agree with the three or four governments here about the refinery, we will lead and we’ll make sure that refinery is built within the next four or five years,” Dangote said.
The scale of the proposal is significant. If implemented, the refinery would process crude oil from across East Africa, including emerging producers such as Uganda and South Sudan, as well as potential inputs from the Democratic Republic of Congo.
This would mark a shift from the current model where the region exports crude and imports refined fuel, often at higher costs.
The move also comes at a time when global oil markets remain volatile, particularly following tensions in the Middle East that have disrupted supply chains and driven price spikes. East Africa, which relies almost entirely on imported refined petroleum products, has been especially vulnerable to these shocks.
By investing in refining capacity locally, regional leaders hope to insulate their economies from external disruptions while also capturing more value from their natural resources.
President Ruto further underscored the broader economic logic behind the initiative, noting that Africa produces an estimated 10 million barrels of oil per day, yet still spends heavily on imports of refined fuel. This imbalance, he argued, reflects a structural gap in the continent’s industrial capacity.
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Beyond the regional refinery discussions, Kenya is also exploring direct investment in Uganda’s planned oil refinery project in Hoima, estimated at around $4 billion approximately KSh500 billion.
This signals a growing shift toward cross-border energy collaboration, with countries increasingly viewing infrastructure as a shared regional asset rather than a national undertaking.
Uganda, which is expected to begin commercial oil production soon, has already entered into agreements with international investors to develop its own refining capacity.
The addition of a larger, regional refinery would complement these efforts, creating a more integrated energy ecosystem across East Africa.
Analysts say the involvement of Dangote, whose track record includes delivering one of the most ambitious industrial projects on the continent, adds credibility to the proposal. His refinery in Nigeria has already begun exporting fuel across Africa, helping to ease supply shortages in several markets.
At the same time, the project raises important questions about financing, coordination, and political alignment. Large-scale infrastructure projects of this nature require sustained commitment from multiple governments, as well as regulatory harmonisation and long-term investment frameworks.
Still, the momentum behind the proposal reflects a growing recognition that Africa’s energy challenges cannot be solved through imports alone.
For Kenya, the stakes are particularly high. Recent fuel price shocks have exposed the country’s vulnerability to global market swings, reinforcing the urgency of building domestic and regional capacity.
If successfully implemented, the Dangote-backed refinery could redefine the region’s energy landscape, shifting East Africa from a net importer of refined fuel to a more self-sufficient and resilient market.
But as with many ambitious projects on the continent, the real test will not be in the announcement, but in the execution.