President William Ruto’s economic adviser, David Ndii, has indicated that the long-awaited construction of the proposed East African oil refinery by Nigerian billionaire Aliko Dangote is expected to begin later in 2026.

Ndii made the revelation while responding to an X user on Tuesday, July 7, 2026, who questioned the progress of the multi-billion-shilling project, which has been the subject of public discussion for months.

Replying to the user, the outspoken economist simply stated that construction is expected to commence this year, renewing hopes that the ambitious project could finally move from the planning stage to implementation.

“Construction will start this year,” Ndii said.

Dangote’s oil refinery

The refinery proposal first came to public attention after President William Ruto announced that Kenya would partner with Dangote Group to establish a major oil refinery capable of processing up to 650,000 barrels of crude oil per day.

At the time, the president said Kenya would acquire a stake in the project through the National Infrastructure Fund, with the total investment estimated at between $16 billion and $20 billion (about Ksh2.6 trillion).

The project is expected to serve not only Kenya but the wider East African region, reducing dependence on imported refined petroleum products that currently come largely from the Middle East. Successive global supply disruptions, such as the recent war in the Middle East, have exposed East African countries to fuel shortages and sharp price increases, making the refinery a strategic investment for regional energy security.

Feasibility studies of Tanga oil project

According to earlier reports, Dangote Group has been conducting feasibility studies to determine the most suitable location for the refinery, with the ports of Mombasa, Lamu and Tanga all considered as possible sites. The businessman had previously indicated that Kenya was his preferred location after initially considering Tanzania.

President Ruto has in the past maintained that the refinery would strengthen Kenya’s position as a regional energy hub while protecting the country from external fuel supply shocks. He also said the government would participate in financing the project through the National Infrastructure Fund.

The refinery is expected to process crude oil from across the region, including Uganda’s oil fields, whose production is set to be exported through the East African Crude Oil Pipeline. Kenya is also preparing for commercial oil production in Turkana, further strengthening the case for a regional refinery.

Dangote has previously stated that for the project to take off, the Kenyan government would need to provide land, financing support and policy protection against the dumping of cheap refined fuel into the regional market.

Aliko’s business venture

The Nigerian industrialist has been expanding his investments in Kenya in recent years. Through Alterra Capital, he participated in the acquisition of Pollman’s Tours and Safaris before the investment firm later completed the purchase of Java House. Dangote has also previously expressed interest in investing in Kenya’s cement sector after earlier plans to establish a cement plant stalled.