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Originally published by Nation Business
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business
August 25, 2026
7h ago

Nairobi-Dar refinery rivalry: Oil projects expose long running regional tensions

Nairobi-Dar refinery rivalry: Oil projects expose long running regional tensions

Billionaire Aliko Dangote’s decision to build in Lamu sent shockwaves through the region..

✨ Key Highlights

Long-standing regional rivalries in East Africa are being highlighted by competing oil projects, particularly concerning a new refinery.

  • Kenya's Lamu has been chosen as the site for the Dangote Group-financed regional oil refinery, a decision that has stirred further competition.
  • The Dangote refinery plans were initially announced for Tanzania, but Tanzania's president stated she was not consulted, leading to a shift in location.
  • Meanwhile, Uganda and Tanzania have signed an agreement with Vitol Bahrain to build a US$20 billion regional energy hub in Tanga, Tanzania.
  • This rivalry echoes past disagreements, such as the collapsed 2014 crude oil pipeline deal between Uganda and Kenya, which ultimately favored a route through Tanzania.

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