The selection of possible locations for billionaire Aliko Dangote’s proposed East African refinery now includes Lamu, recognized as a UNESCO World Heritage site.
Mombasa is also being evaluated as a Kenyan site for the refinery, limiting the potential locations to a 370-kilometer region along the Indian Ocean coast.
This development occurs as regional nations increasingly compete to host what might become East Africa’s biggest oil refinery, modeled after Dangote’s 650,000-barrel-per-day operation in Lagos, Nigeria.
Dangote continues discussions with East African leaders regarding the refinery, with regional governments offering backing for the initiative.
Following the project’s April announcement, Tanga in Tanzania was initially suggested, but during a May 10 interview, Dangote indicated a preference for Mombasa due to its larger port and deeper shipping capabilities.
He also highlighted that Kenya possesses certain advantages over Tanzania, providing the nation with a commercial edge.
After reports emerged about his preference for Mombasa, Dangote met with Tanzanian President Samia Suluhu on May 16 in Dar es Salaam, reaffirming his commitment to Tanzania irrespective of where the refinery is ultimately established.
In the meantime, Uganda proceeds with its refinery plans in Hoima, a facility with a 60,000-barrel-per-day capacity that has been in development for more than ten years.
Despite his inclination, Dangote stated that President William Ruto will have the final say on where the refinery will be situated in Kenya.
The businessman is anticipated to finance the majority of the project, with costs estimated at Ksh1.95 trillion to Ksh2.21 trillion.
The refinery will supply regional markets such as Uganda, Kenya, Tanzania, Ethiopia, South Sudan, and the Democratic Republic of Congo (DRC).
Dangote’s strategy to extend his refining operations into East Africa seeks to enhance fuel security across the continent, given increasing worries about dependence on imported petroleum products.