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Africa’s richest businessman, Aliko Dangote, has confirmed that his planned East African oil refinery will be established in Kenya. The announcement ends months of speculation that had linked the multi-billion project to both Kenya and Tanzania.
Dangote Industries said it selected Kenya after assessing several investment factors. The company considered logistics, commercial viability and technical requirements before reaching its final decision.
Preparations for construction already underway
The company revealed that preparations for the refinery have already started. Engineers have completed site identification and begun soil investigations ahead of construction.
Design and engineering activities are also progressing as the project moves into the next phase. Company officials said the groundwork will support the construction schedule.
Edwin Devakumar, Vice President for Oil and Gas at Dangote Industries, confirmed that Kenya remained the preferred destination from the beginning. He said the company had maintained confidence in the country throughout the planning process.
Refinery to process 700,000 barrels daily
The planned facility will process approximately 700,000 barrels of crude oil every day. Once operational, it will become the largest refinery in East Africa.
The investment carries an estimated price tag of Ksh2.59 trillion, equivalent to about USD20 billion. Industry observers describe it as one of the biggest private investments ever planned in Kenya.
The refinery aims to supply fuel to Kenya and neighbouring countries. The project could also reduce East Africa’s dependence on imported petroleum products.
Construction expected within three years
Dangote Industries expects construction to last between 30 months and three years. Commercial operations will begin after engineers complete testing and commissioning.
The company plans to finance the project through internally generated funds, bond issuances and a planned initial public offering. This financing model will reduce dependence on external borrowing.
Regional project despite Kenyan location
The confirmation follows recent talks between Aliko Dangote and Tanzanian President Samia Suluhu Hassan. During their meeting, Dangote explained why the company decided against building the refinery in Tanzania.
He nevertheless invited Tanzania to participate in the venture. The company intends the refinery to serve the broader East African market rather than Kenya alone.
Project expected to strengthen Kenya’s energy sector
The proposed refinery will resemble Dangote’s flagship facility in Nigeria. The Lagos refinery currently processes around 650,000 barrels of crude oil each day.
President William Ruto had earlier announced that construction would begin this year. The government expects the investment to strengthen Kenya’s position as a regional energy and petroleum hub.
Analysts also expect the project to create thousands of employment opportunities. They believe it will attract more investment into Kenya’s energy and infrastructure sectors.
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