Trillion Oil Refinery Project
President William Ruto has announced that the Kenyan government will invest public funds in a proposed multi-trillion-shilling oil refinery project linked to Nigerian billionaire Aliko Dangote, in a move aimed at reducing East Africa’s dependence on imported fuel.
Speaking during the African Forward Summit held in Nairobi on Monday, May 11, Ruto said the government would channel resources from the National Infrastructure Fund (NIF) into the planned refinery project as part of a broader strategy to co-invest with the private sector and cushion investors from risk.
Addressing business leaders and investors at the summit, the Head of State said governments across Africa must move beyond regulation and actively participate in strategic investments capable of transforming regional economies.
“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. So that when you make the money, we also make the money,” Ruto declared.
“And we are going to invest so that we can de-risk that investment,” he added.
The proposed refinery, estimated to cost approximately Ksh2.58 trillion (USD 20 billion), is expected to be constructed in Mombasa after plans to establish the facility in Tanga, Tanzania were reportedly shelved.
According to Ruto, Kenya’s National Infrastructure Fund — which he previously unveiled as a Ksh5 trillion development vehicle — will play a central role in financing transformative projects across sectors including energy, transport and manufacturing.
“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,” the President stated.
The NIF currently holds about Ksh103 billion, roughly equivalent to USD 1 billion, generated from the partial sale of the Kenya Pipeline Company (KPC). The government also expects to raise more than Ksh200 billion in the coming months through the sale of additional state-owned enterprises.
With projected seed capital exceeding Ksh300 billion, the administration believes the fund will provide Kenya with the financial muscle to invest in large-scale infrastructure projects while generating long-term returns for the state.
The planned refinery is expected to significantly reshape the region’s energy landscape by reducing East Africa’s reliance on imported refined petroleum products, which have historically exposed local economies to volatile global oil prices and supply chain disruptions.
The project also signals a growing economic partnership between Kenya and Dangote-linked industrial interests, as African governments increasingly seek home-grown industrial solutions to strengthen regional self-sufficiency.
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