Ruto To Partly Fund Dangote-Linked Oil Refinery Using Infrastructure Fund
The government of Kenya will invest public funds under the National Infrastructure Fund in the planned East African oil refinery associated with Nigerian businessman Aliko Dangote.
President William Ruto announced during the African Forward Summit held in Nairobi on Monday, May 11.
Speaking to private sector stakeholders and investors during the summit, Ruto said the state will co-invest to de-risk the project and also share in future profits.
“But I also want to tell Aliko and all the other guys, you are not going to invest alone. Governments are also going to invest,” Ruto stated.
“So that when you make the money, we also make the money. And we are going to invest so that we can de-risk that investment.”
President William Ruto ~ My good friend Aliko Dangote is in the room. we have agreed that the Dangote group does a visibility study and then pick between Tanga and Mombasa to set up the refinery.
— SHABZ (@DerrickShabz) May 12, 2026
Linda Mama State House Laikipia North Shared Prosperity #MapendekezoYaTume pic.twitter.com/7ByTL5uWSP
According to the head of state, the Kenyan government will invest in the refinery using funds from the NIF, a Ksh5 trillion infrastructure vehicle he says will drive Kenya toward a first-world nation.
“I am going to use resources from my National Infrastructure Fund to invest in the refinery so that we can share in the profits that come, and we can assist our private sector to de-risk the investments they are going to put in these projects,” he added.
It is worth noting that the fund currently has Ksh103 billion (around USD 1 billion) in proceeds from the partial sale of the Kenya Pipeline Company (KPC).
However, in the coming months, the government is expecting to receive over Ksh200 billion from the sale of other state-owned enterprises.
With over Ksh300 billion as seed capital, the government believes it can invest in infrastructure projects and get profits that will then be used to fund other developments.
President William Ruto has pledged government support for a proposed East African oil refinery and pipeline project, saying the region must reduce dependence on volatile global supply routes like the Strait of Hormuz amid rising energy concerns linked to the US-Iran conflict. pic.twitter.com/31ZD3rTUpA
— TheStarKenya (@TheStarKenya) May 12, 2026
The oil refinery project is expected to cost about Ksh2.58 trillion (USD 20 billion), and Dangote is planning to put it in Mombasa after ditching earlier plans for Tanga, Tanzania.
The facility is intended to reduce East Africa’s reliance on imported refined fuel and cushion the region from global supply disruptions.
Refinery Location
Dangote had earlier pointed to Tanga as the potential site for the refinery before turning to Mombasa.
Africa's richest man Aliko Dangote is in Kenya's coastal town of Mombasa.
— African News (@SaharaWire) May 10, 2026
Mombada used to have Changamwe Crude Oil Refinery which was established in 1960 and ceased crude oil refining in 2013, a year after the country discovered oil on the northern plains.
Founded by Shell and… https://t.co/UEw9pNhl13 pic.twitter.com/hOgSs5FNeH
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However, according to Ruto, Tanga was initially seen as logical due to the crude pipeline route.
He now says the final decision will be left to Dangote and project investors after feasibility studies.
“We have asked Dangote here to do some research,” he stated.
“We have the port of Tanga, we have the port of Mombasa, we have the port of Lamu and the rest in between, wherever they will find the most suitable location.”
He added, “We will not dictate to Aliko Dangote and the investors.”
Ruto To Partly Fund Dangote-Linked Oil Refinery Using Infrastructure Fund
