Oil & Gas

Nigerian billionaire Aliko Dangote has indicated that he now favours Kenya’s Mombasa over Tanzania’s Tanga as the preferred location for a proposed 650,000-barrel-per-day oil refinery valued at between USD 15 billion and USD 17 billion. The shift comes less than three weeks after he publicly pledged to build the refinery in Tanga during the Africa We Build Summit held in Nairobi on April 23, 2026.

Speaking after the summit, Dangote said Mombasa has advantages due to its deeper and larger port infrastructure, as well as Kenya’s bigger fuel market and higher consumption levels compared to Tanzania. He explained that the viability of the refinery would also depend on government support, including land allocation, regional financing, and protection against the dumping of cheap fuel imports from countries such as Russia and India.

Despite leaning toward Mombasa, Dangote said Tanzania remains under consideration and that the refinery could still be built in Tanga. He added that if agreements are reached with the host government, construction of the 650,000-barrel-per-day facility could begin before the end of the year. According to Reuters, Dangote stated that the final decision ultimately rests with Kenyan President William Ruto.

The developments have sparked regional debate, with analysts suggesting Dangote may be using competition between Kenya and Tanzania to negotiate more favourable terms. Tanzanian President Samia Suluhu Hassan later revealed that she had not been consulted before the refinery announcement made in Nairobi. During a state visit to Dodoma, President Ruto defended the discussions as part of broader East African cooperation aimed at industrialisation and the shared use of regional natural resources.