Kenya is weighing the use of public funds, including pension savings, to help finance a proposed East Africa oil refinery backed by Nigerian billionaire Aliko Dangote, as the project shifts from Tanzania's Tanga port to Mombasa as the preferred site.
Dangote told the Financial Times he favours Mombasa for its deeper port and larger market, but said the final call rests with President William Ruto. "The ball is in the hands of President Ruto. Whatever President Ruto says, we will do," he said. The refinery, designed to process 650,000 barrels per day, is estimated to cost between $15 billion and $17 billion, roughly Ksh1.9 to Ksh2.2 trillion.
The proposal emerged at the Africa We Build Summit in Nairobi in April, where Dangote appeared alongside Ruto and Uganda's Yoweri Museveni. The announcement blindsided Tanzanian President Samia Suluhu Hassan, who revealed she had not been consulted before Tanga was named as the site. The diplomatic row has since pushed Mombasa to the fore.
Kenya's National Social Security Fund, projected to reach Ksh1 trillion in assets by June 2027, is among the financing sources being considered under the government's Ksh5 trillion National Infrastructure Fund framework. Dangote is also structuring a Kenya-based dollar-denominated investment vehicle ahead of a planned pan-African refinery IPO targeting up to $5 billion.
A key challenge remains crude supply. The four partner countries — Uganda, South Sudan, DRC, and Kenya — can collectively supply an estimated 281,000 barrels per day, less than half the refinery's designed capacity. No officials have publicly explained how the shortfall would be managed. The terms of any Kenyan public investment have not been disclosed.
Dangote told the Financial Times he favours Mombasa for its deeper port and larger market, but said the final call rests with President William Ruto. "The ball is in the hands of President Ruto. Whatever President Ruto says, we will do," he said. The refinery, designed to process 650,000 barrels per day, is estimated to cost between $15 billion and $17 billion, roughly Ksh1.9 to Ksh2.2 trillion.
The proposal emerged at the Africa We Build Summit in Nairobi in April, where Dangote appeared alongside Ruto and Uganda's Yoweri Museveni. The announcement blindsided Tanzanian President Samia Suluhu Hassan, who revealed she had not been consulted before Tanga was named as the site. The diplomatic row has since pushed Mombasa to the fore.
Kenya's National Social Security Fund, projected to reach Ksh1 trillion in assets by June 2027, is among the financing sources being considered under the government's Ksh5 trillion National Infrastructure Fund framework. Dangote is also structuring a Kenya-based dollar-denominated investment vehicle ahead of a planned pan-African refinery IPO targeting up to $5 billion.
A key challenge remains crude supply. The four partner countries — Uganda, South Sudan, DRC, and Kenya — can collectively supply an estimated 281,000 barrels per day, less than half the refinery's designed capacity. No officials have publicly explained how the shortfall would be managed. The terms of any Kenyan public investment have not been disclosed.