East Africa’s Energy Race Intensifies as Tanzania and Kenya Compete for Dangote’s Refinery Project BODY: Nairobi, Kenya – May 17, 2026 – The competition to host a proposed multibillion-dollar oil refinery in East Africa has intensified, with Tanzania’s President Samia Suluhu Hassan engaging in critical investment discussions with Nigerian billionaire Aliko Dangote.
The project, a cornerstone of the region’s energy strategy, is a focal point of contention between Tanzania and Kenya, as both nations vie for its potential economic benefits.
The proposed refinery, which is expected to process up to 650,000 barrels of crude oil daily, is seen as a linchpin in the East African Community’s (EAC) strategy to reduce dependence on imported petroleum products. Kenyan President William Ruto has publicly endorsed Tanzania’s Tanga port as the site for the project, while Dangote’s reported preference for Kenya’s Mombasa port highlights a potential rift in regional cooperation.
The talks in Dar es Salaam, attended by top officials from the Dangote Group and the Tanzanian government, underscore the high stakes involved in the decision. Tanzania’s interest in hosting the project is not just economic; it aligns with the nation’s broader agenda of enhancing its strategic importance in the region.
The proposed project is anticipated to redefine the region’s energy future and create substantial economic opportunities. It would process a significant portion of the crude oil produced in the EAC member states, potentially reducing the need for imported fuel and bolstering regional trade.
However, the logistics of the project present a complex challenge. Dangote’s preference for Mombasa, Kenya’s largest port, is driven by its superior infrastructure and strategic location, which would offer significant advantages in terms of logistics and cost efficiency. Conversely, Kenya’s endorsement of Tanga port is a strategic move to enhance its own economic prospects and regional influence.
As the race for the Dangote oil refinery intensifies, the next few months will be crucial in determining which nation emerges as the preferred location.
The decision will have far — reaching implications for both countries’economies and the broader East African Community’s aspirations for regional integration and economic independence.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Segun Adeyemi
