President William Ruto has thrown his weight behind Tanzania’s Port of Tanga as the preferred location for a proposed East African oil refinery worth up to $20 billion – while making clear that the Nigerian billionaire investor Aliko Dangote will ultimately have the final say.
Speaking at the Africa Forward Summit in Nairobi on Monday, May 11, Ruto pointed to existing pipeline infrastructure as the primary reason for his preference. Because regional crude oil pipelines were originally designed to terminate at Tanga, he considers the Tanzanian coastal town the most logical and cost-effective anchor for the ambitious project.
“Because the crude pipeline was going to Tanga, we thought that is the best location. But we will not dictate to Aliko Dangote and the investors,” Ruto explained.
Ruto framed the $16 billion to $20 billion refinery as a cornerstone of regional independence. The joint venture between Kenya, Uganda, and Tanzania aims to solidify energy security and spark a new wave of industrialization across East Africa.
By building local refining capacity, member states hope to shield their economies from the volatile nature of global shipping and foreign geopolitical tensions. Ruto highlighted the urgent need to move away from a reliance on imported fuel, which often leaves the region vulnerable to supply shocks. “We do not want to be held hostage anymore by the Strait of Hormuz. We do not want to be held hostage by wars that are started by other people,” he said.
Ruto further shared that the region intends to harness its own natural resources to drive industrial growth and economic transformation. “We have our own resources here, and we are saying we are going to use our African resources to industrialise our region,” he said.
To ensure the project’s success, the President confirmed that Dangote is currently conducting feasibility studies. These assessments will identify the most commercially viable site for the refinery, with Kenya’s Port of Mombasa and Port of Lamu remaining strong contenders alongside Tanga.
Beyond private capital, Ruto revealed that East African governments plan to invest directly in the refinery project. By partnering with private investors, the states aim to mitigate risks and ensure that the public shares in the venture’s financial success. “But I want to also tell Aliko and all the other guys, you are not going to invest alone. Governments are also going to invest so that when you make the money, we also make the money,” he said.
To fulfill Kenya’s part of the bargain, Ruto committed to using resources from the National Infrastructure Fund to back the project and guarantee its financial viability.
Ruto’s public backing of Tanga comes just days after Dangote signaled a shift in thinking. In an interview with the Financial Times on May 10, the Nigerian billionaire revealed he favors Mombasa, citing the port’s superior maritime infrastructure as a critical factor for a facility designed to process 650,000 barrels of crude oil per day.
“I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port,” Dangote stated.
Beyond port logistics, Dangote pointed to Kenya’s stronger consumer market as another factor in Mombasa’s favor, noting that “Kenyans consume more” – making Kenya the larger and more commercially attractive base for his energy ambitions.
Despite his own preference, however, Dangote deferred the final decision entirely to the Kenyan head of state.
“The ball is in the hands of President Ruto. Whatever President Ruto says is what I’ll do,” Dangote stated.
