Africa's Richest Man Plans Second Oil Refinery in Kenya

The businessman who launched Nigeria's only operational oil refinery in 2024 has announced plans for a second large refinery in East Africa. The new facility would be modeled on the $19 billion project in Lagos State and is projected to cost between $15 billion and $17 billion.

Construction would target Mombasa, Kenya, which the businessman cited for its deeper port and larger economy compared with Tanzania's Tanga port. The announcement comes after global oil prices rose and supplies were disrupted when the Strait of Hormuz was closed.

About 20 percent of the world's oil and natural gas passes through the strait. West, South and East African countries rely primarily on imports of refined petroleum products from the Middle East and have been seeking ways to improve energy security.

Nigeria's refinery began selling large volumes of refined products across the continent as the conflict escalated in March. By the end of March the facility, which can process 650,000 barrels per day, was also receiving orders from outside Africa, particularly for jet fuel after hundreds of flights were cancelled in various regions.

Neighbouring countries including Cameroon, Togo, Ghana and Tanzania have turned to the Nigerian refinery as Middle East supplies tightened.

Nigeria, Africa's largest oil producer, has had no functional state-owned refinery and had not refined oil meaningfully since 2019. The new facility has positioned the country to become a net exporter of jet fuel and diesel. African countries refine only about 44 percent of the oil they consume, according to a 2022 African Union report, with the remainder imported.

North Africa has 21 refineries, Southern Africa has seven and West Africa has 14, but many operate below capacity or are idle. East Africa has had no operating refining capacity since the Mombasa refinery closed in 2013. The region holds about 4.7 billion barrels of crude reserves, mainly in Uganda, South Sudan, Kenya and the Democratic Republic of the Congo.

Kenya imported 40 million barrels of petroleum in 2025, primarily from the UAE, Saudi Arabia, India and Oman.

A refinery in Kenya would reduce East Africa's dependence on Middle East imports. Local refining capacity is expected to result in lower petrol prices, reduced transport costs and greater availability of by-products such as fertilisers and petrochemicals.

In Nigeria, local airlines have continued to face high jet fuel prices despite the new supplies. The government removed fuel subsidies in 2023 and bureaucracy at the state oil company required the refinery to import some crude. The refinery is reported to be contributing to a more transparent and competitive market.

Other refining projects are advancing. A 30,000-barrel-per-day facility in Angola began supplying markets last week and plans to double capacity by the end of 2026. A government-funded refinery in Uganda is scheduled to start operations in 2029 with capacity of 60,000 barrels per day.

African governments are expected to create business conditions that support private investment in additional capacity.