Africa's richest man, Aliko Dangote, has announced that his proposed East African oil refinery will be built in Kenya instead of Tanzania, ending speculation over the location of one of the region's most ambitious energy projects.
The refinery is expected to have a processing capacity of 700,000 barrels of crude oil per day, making it the largest oil refinery in East Africa and among the biggest on the continent. Once completed, the facility is expected to supply refined petroleum products to Kenya and neighbouring countries, helping to reduce East Africa's reliance on imported fuels while improving regional energy security.
The investment is expected to strengthen Kenya's position as a regional petroleum hub, create thousands of jobs during construction and operation, and stimulate growth in supporting industries, including transport, logistics and petrochemicals.
The announcement comes as Dangote continues to expand his footprint in Africa's energy sector following the commissioning of his 650,000-barrel-per-day refinery in Lagos, Nigeria, the largest single-train refinery in the world.
The planned Kenyan refinery would further cement the Dangote Group's ambitions to boost Africa's refining capacity and reduce the continent's dependence on imported refined petroleum products.
The decision is also a setback for Tanzania, which had been viewed as a potential host for the multi-billion-dollar project amid efforts to attract large-scale investments into its energy sector. Further details, including the project's timeline, financing and exact location in Kenya, are expected to be announced as planning progresses.
