Kenya and Tanzania Presidents clash over location for multibillion-dollar Dangote mega-refinery

May 27, 2026
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In the second quarter of 2026, a high-stakes diplomatic and economic tug-of-war has emerged between Kenya’s President William Ruto and Tanzania’s President Samia Suluhu Hassan over the location of a proposed multibillion-dollar Dangote mega-refinery in East Africa.

​In late April 2026, during the “Africa We Build” summit in Nairobi, President Ruto made a surprise announcement that caught his Tanzanian counterpart off guard. He publicly endorsed the Port of Tanga in Tanzania as the site for a joint regional refinery modeled after Aliko Dangote’s 650,000-barrel-per-day facility in Nigeria.

President Hassan later confronted Ruto, noting she had not been consulted on the announcement regarding Tanzanian soil.

Ruto clarified that while Tanga is a strategic contender, the project is a “regional” one involving Kenya, Uganda, Rwanda, and South Sudan. He jokingly added that if he had known the announcement would “irk” Tanzania, he would have proposed Mombasa instead, a move analysts see as a subtle “edge” to keep Kenya in the running if Tanzania does not align quickly.

​While Ruto has publicly campaigned for a regional approach, behind-the-scenes competition for the investor’s favor is intensifying. The battle isn’t just about prestige; it’s about energy sovereignty and industrialization.

A refinery of this scale (aiming for 650,000 barrels per day) would create tens of thousands of jobs and spin off industries in plastics, fertilizers, and petrochemicals.

East Africa currently imports nearly all its refined petroleum. This project would flip the region to a net exporter, similar to Nigeria’s milestone in March 2026.

Aliko Dangote has stated he is ready to build the facility within 4–5 years, provided the regional governments provide a unified support structure.

​As of late May 2026, Aliko Dangote has held high-level meetings in both Nairobi and Dar es Salaam. While Ruto was first to “market” the idea and secure a public commitment from Dangote at a Nairobi summit, President Hassan has responded by intensifying direct investment negotiations to ensure Tanzania doesn’t lose the “jewel” of the project to Kenya’s Mombasa port.

Ruto’s “first move” was a diplomatic gamble, by announcing Tanga publicly, he forced the project into the regional spotlight, but his underlying infrastructure in Mombasa remains the primary competitor for the actual site.

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