A Nigerian businessman is considering building a $17 billion oil refinery in Kenya.

Written by: Ayman Ragab

Nigerian businessman Aliko Dangote plans to build a new oil refinery in Kenya, at a cost of between $15 billion and $17 billion.

The planned refinery will have a production capacity of 650,000 barrels per day.

This move could reshape the fuel market in East Africa and reduce the region's dependence on imports of refined petroleum products.

If completed as planned, the project will be one of the largest potential industrial investments in East Africa in the coming years, according to CNN.

Construction of an oil refinery in Kenya

Dangote confirmed that he is inclined to choose the Kenyan city of Mombasa as the headquarters for the project, noting that the port has greater capabilities and better sea depth compared to the port of Tanga in Tanzania, which gives it an important logistical advantage to support import and export operations.

He emphasized that the Kenyan economy enjoys a relatively larger consumption volume within the East African region, saying, “Kenyans consume more, and it is a larger economy.”.

Fuel in East Africa

He added that the final decision will depend on the position of Kenyan President William Ruto and the government's support for the project.

It is noted that East African countries are currently almost entirely dependent on imports of refined fuel, especially from Middle Eastern countries, which has made the region vulnerable to price fluctuations and global supply disruptions.

This comes especially with the escalating geopolitical tensions related to the US-Israeli war on Iran.