Kenya, Uganda weigh joint refinery project in Tanzania

Kenyan President William Ruto. PHOTO | COURTESY

Nairobi. Kenya and Uganda are in talks to establish a joint oil refinery in Tanzania, in a move aimed at harnessing the region’s crude oil resources and strengthening energy security.

Speaking at The Africa We Build Summit in Nairobi on Thursday, Kenya President William Ruto said the proposed facility would process crude from across the region, including Uganda, the Democratic Republic of Congo and South Sudan, into refined petroleum products for regional consumption.

“We are discussing the establishment of a joint refinery in Tanga to benefit all of us,” said Dr Ruto.

“That refinery will process oil from the DRC, Kenya, South Sudan and Uganda. We will then build a pipeline from Tanga to Mombasa, allowing finished products to move through infrastructure we jointly own with Uganda,” he added.

He noted that such integration would enhance the commercial viability of shared infrastructure, saying: “All our assets become profitable.”

The proposal comes as construction continues on the East African Crude Oil Pipeline, which will transport crude oil from Uganda’s Tilenga and Kingfisher oilfields to the port of Tanga in Tanzania once completed.

Dr Ruto expressed confidence in the project’s feasibility, citing the availability of raw materials, market demand and regional capacity.

Uganda President Yoweri Museveni said the refinery aligns with Uganda’s broader energy strategy and would serve both national and regional interests.“Our strategy on refining is clear. Uganda has sufficient crude oil to support some small domestic refineries as well as a regional refinery in Tanga,” he said.

The initiative has also drawn support from Nigerian businessman Aliko Dangote, who signalled his readiness to invest in the project.

“Even now, I can commit to supporting the two presidents if they proceed with the refinery. We can build a facility similar to what we have in Nigeria,” he said.

“It will work .... there is nothing to stop it. We have already developed one in Nigeria, which is operational,” he added, highlighting the role of regional financiers such as Africa Finance Corporation and African Export-Import Bank.

Mr Dangote said the refinery could be completed within four to five years if agreements are reached.

The regional leaders emphasised that strong political leadership and domestic investment would be critical to the project’s success.

“External investors will not come unless we take the lead ourselves. It is not their responsibility to build our economies—it is ours. Others can support us, but we must drive the process,” Dr Ruto said.

He added that bold and, at times, unpopular policy decisions would be necessary to unlock industrial growth.

“Leadership is central. If leaders are not prepared to take decisive action and implement the right policies, progress will stall,” he said.