Kenya, Uganda to build oil refinery in Tanzania

President William Ruto alongside his ugandan counterpart Yoweri Museveni address the Inaugural Africa we Build Summit in NairobIi. [Pcs,Standard]

Kenya and Uganda are in discussions to build a refinery in Tanzania that will serve oil-producing countries in the East African Community (EAC).

The refinery project to be located in Tanga has elicited the interest of business conglomerate Aliko Dangote, who has expressed his wishes to facilitate a similar project to what he has set up in Nigeria.

This would be in line with the current strategic plan of Dangote Group that targets to invest up to Sh5.2 trillion ($40 billion) in various industries by 2030.

The refinery is targeted to reduce dependency on imported petroleum products, which are subject to global instability.

“Even now I can give my commitment to the two presidents that if they will support the refinery, we will build an identical one to what we have in Nigeria, 650,000 barrels,” said Mr Dangote, the founder and chairperson of Dangote Group, during The Africa We Build Summit 2026 held in Nairobi.

The summit saw the attendance of President William Ruto and his Ugandan counterpart, Yoweri Museveni, as well as Africa Finance Corporation President Samaila Zubairu.

The event also brought together policymakers, government officials and finance institutions across the continent.

Regional cooperation was emphasised as speakers at the event pushed for cross-investment in infrastructure projects for the benefit of the continent’s economy. The need for regional consideration when individual countries are coming up with key projects was echoed.

It is at this event that President Ruto revealed that Kenya will be investing in Uganda’s oil refinery business as reciprocation to taking a stake in Kenya Pipeline Company (KPC), a State entity that recently went public.

“We are discussing having a joint refinery in Tanga to benefit all of us. That refinery will take on board oil from the Democratic Republic of Congo (DRC), Kenya, Uganda, and South Sudan,” Ruto said, adding:

“We will just need to build a short pipeline from Tanga to Mombasa, and the finished product will use the pipeline that we already jointly own with Uganda.”

In the March public listing of KPC, Uganda has a major stake of 20.15 per cent. About 95 per cent of Uganda’s petroleum products, nearly three billion litres, pass through KPC infrastructure.

Uganda has already started mining oil, with production expected in the course of the year. The country is also putting up a pipeline, the East African Crude Oil Pipeline, that will transport the mined product from Lake Albert to Tanga.

President Museveni maintained that he refused plans to export crude oil and insisted on a refinery instead so as to protect and grow the job market.

“In Uganda, I have banned the export of unprocessed minerals,” he said, adding that he was almost swayed by multinational oil companies with an interest in the country’s oil that refineries do not make money.

“But refineries have a very high rate of return. Why do you take oil (outside) when users are here?” he posed.

He said having a refinery in the region will be beneficial to all countries.

“It is better if the countries have ownership together. We owned ports, airports and railways together,” he said.

He said the oil that will be going to the Tanga refinery will be surplus as Uganda will retain some for its 60,000 barrel per day refinery being set up in Kabaale.

Uganda's refusal to export unprocessed minerals is the reason why the Kenyan firm Devki Group ventured into the country to set up a steel factory.

President Ruto said during the event that he had met with his counterpart to petition for the export of iron ore for steel manufacturing in Kenya, but President Museveni refused.