Aliko Dangote's decision to build a proposed USD15 to 17 billion mega oil refinery in Lamu, Kenya, over Tanzania has sparked regional debate, with logistics and market depth proving more crucial than proximity to crude oil sources.

• The **Lamu Port** offers superior infrastructure, including the ability to berth the world's largest supertankers fully loaded due to its natural depth of 17.5 to 18 meters.
• This decision was influenced by the market depth and logistical advantages of Lamu, rather than the proximity to the East African Crude Oil Pipeline (EACOP), as the pipeline's crude is contractually committed, and its characteristics are not ideal for the refinery's scale.
• Strategically, Aliko Dangote aims to leverage Lamu's potential as a transshipment hub and its inclusion in the LAPSSET corridor to refine and re-export fuels, positioning Kenya as East Africa's refining and transshipment capital.