A new twist has emerged in the proposed Tanga Oil Refinery in Tanzania following revelations from African billionaire Aliko Dangote that he now favors Mombasa, Kenya, for the multi-billion-shilling investment.
During an interview with the Financial Times on May 10, Dangote confirmed his shift in focus, citing Mombasa’s superior maritime infrastructure as a decisive factor for a facility designed to process a massive 650,000 barrels of crude oil daily.
“I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port,” stated Dangote.
Apart from the logistical benefits of the port, the business mogul highlighted the economic potential of the two neighbors. He noted that “Kenyans consume more,” ultimately identifying Kenya as the larger and more lucrative market for his energy ambitions. This move signals a significant win for Kenya’s industrial landscape while leaving the Tanzanian project in a state of uncertainty.
The price tag for such a mammoth undertaking sits between $15 billion and $17 billion, roughly Ksh1.9 trillion to Ksh2.2 trillion. This staggering figure would make the refinery one of the most expensive industrial investments ever proposed in the East African region.
While Dangote expressed a strong vote of confidence in Mombasa, he told the Financial Times that the final decision rests entirely with President William Ruto.
“The ball is in the hands of President Ruto. Whatever President Ruto says, we will do,” Dangote reiterated, signaling that the project’s fate now hinges on Kenyan executive approval.
The initial Tanga proposal only surfaced last month during the Africa We Build Summit in Nairobi. At that event, President Ruto, joined by Uganda’s President Yoweri Museveni, announced plans for a joint regional refinery, though Dangote’s latest preference for Mombasa suggests a potential shift in the project’s ultimate home.
President Ruto outlined a bold vision for a regional oil refinery designed to process crude from the DRC, Kenya, South Sudan, and Uganda. The plan involves connecting this facility to Mombasa via a pipeline that utilizes infrastructure shared with Uganda.
“That refinery will process oil from the DRC, Kenya, South Sudan and Uganda. We will then build a pipeline from Tanga to Mombasa, allowing finished products to move through infrastructure we jointly own with Uganda,” President Ruto stated.
However, the announcement caught Tanzanian President Samia Suluhu off guard. The Tanzanian head of state later revealed that the Kenyan administration had neither consulted nor informed her about the project before the president went public with the details. This lack of diplomatic coordination adds a layer of complexity to the massive regional project, even as Aliko Dangote expresses his preference for Kenya’s coastal infrastructure.
