Nigerian industrial giant Dangote Industries Limited has confirmed that Kenya will host its planned East African oil refinery, marking one of the continent’s most ambitious energy investments and positioning the country as a future refining hub for the region.
The proposed refinery will have the capacity to process 700,000 barrels of crude oil per day and is expected to supply refined petroleum products to Kenya, Uganda, Tanzania, South Sudan and other East African markets, significantly reducing the region’s long-standing dependence on imported fuel.
The announcement was made by Devakumar Edwin, Group Vice President for Oil and Gas at Dangote Industries, who said the project forms part of the Nigerian conglomerate’s wider strategy to expand its refining footprint across Africa. He revealed that the group aims to increase its combined refining capacity to 2.1 million barrels per day, comprising 1.4 million barrels per day in Nigeria and 700,000 barrels per day in Kenya.
The refinery is expected to cost between $15 billion and $17 billion, making it one of the largest private industrial investments ever proposed in East Africa. Kenya secured the investment after Dangote shifted its original plan from Tanga Port in Tanzania, where the company had initially explored establishing a regional refinery. The decision followed an assessment of East Africa’s logistics and market dynamics, with Kenya emerging as the preferred destination because of its stronger infrastructure, larger domestic fuel market, well-developed port facilities and strategic location as the region’s commercial gateway.
Speaking previously about the project, Aliko Dangote, President and Chief Executive Officer of Dangote Industries, identified Mombasa as his preferred location because of its deep-water port and established petroleum infrastructure, although Lamu also remains under consideration.
The company has yet to announce the final site. The refinery will be designed to process crude oil sourced from across the region, including production from Uganda, South Sudan, Kenya and the Democratic Republic of Congo, while supplying refined products throughout East Africa. The investment could fundamentally reshape the region’s energy landscape.
Despite growing oil production in several East African countries, the region still imports the overwhelming majority of its refined petroleum products, leaving governments vulnerable to global price shocks, supply disruptions and shipping bottlenecks. A refinery of this scale would significantly reduce import dependence while improving fuel security and lowering transportation costs across multiple countries. Beyond fuel production, the project is expected to stimulate investment in petroleum storage, pipelines, logistics, petrochemicals and downstream manufacturing.
Thousands of jobs are also likely to be created during both the construction and operational phases, while Kenya would further strengthen its position as East Africa’s principal logistics and industrial hub.
The Kenyan refinery builds on Dangote Industries’ success in Nigeria, where the company operates the world’s largest single-train refinery near Lagos. Since beginning commercial production in 2024, the facility has transformed Nigeria’s downstream petroleum sector by reducing fuel imports and increasing exports of refined products across Africa. The refinery recently surpassed its original design capacity, processing more than 700,000 barrels per day, with the company targeting 1.4 million barrels per day over the next 30 months.
The East African project forms part of Dangote Industries’ wider continental expansion strategy. The company has announced plans to invest an additional $46 billion between 2026 and 2028 across its refining, fertiliser and cement businesses, while also establishing around 20 fertiliser blending plants across Africa to strengthen food security and agricultural productivity. Although the announcement represents a significant milestone, several hurdles remain before construction can begin. Environmental approvals, land acquisition, financing arrangements and agreements with the Kenyan government will need to be completed before work gets underway.
The refinery is expected to rank among Africa’s largest industrial projects and could redefine East Africa’s energy future. More importantly, it would reinforce a broader shift taking place across the continent, where African companies are increasingly investing in large-scale industries that process the continent’s natural resources locally instead of exporting them in raw form. For East Africa, that could mean greater energy security, stronger regional integration and a more resilient industrial economy.
