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Kenya, Uganda to build jointly owned oil refinery in Tanzania

The refinery will serve different East African nations
Kenya President, William Ruto
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The president of Kenya, William Ruto, has proposed the development of a jointly-owned oil refinery with Uganda in Tanga, historic port city in Tanzania, to serve multiple East African countries.

Speaking at the Africa Finance Corporation conferenceย in Nairobi, Ruto said the refinery would process crude oil sourced from across East and Central Africa, including the Democratic Republic of the Congo, Kenya, South Sudan and Uganda.

East African region, increasingly exposed to the ripple effects of the ongoing conflict in Iran, is seeking to cushion its economies by cutting reliance on imported petroleum products.

โ€œAnd by the way, we are discussing a refinery in Tanzaniaโ€ฆ we are going to have a joint refinery in Tanga to benefit all of us,โ€ Ruto said, stressing that the project is being considered as a shared regional investment rather than separate national refineries.

Focus on pipelines and existing assets

Speaking further, The Kenyan president explained that the proposed facility would be supported by a combination of new and existing pipeline infrastructure to improve efficiency and lower costs across the region.

โ€œAnd 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,โ€ he said.

Ruto added that using shared infrastructure would help ensure that investments across the oil value chain become commercially viable.

โ€œSo all our assets become profitable,โ€ he said.

Ruto emphasised the need for a broader, long-term approach to development, warning against fragmented, country-by-country strategies that could limit economic gains.

โ€œBut you need a longer-term viewโ€ฆ not just a short-term country-by-country,โ€ he said, adding that divisions within the East African Community have previously slowed progress on collective economic initiatives.

โ€œThat is why fragmentation is also part of our enemyโ€ฆ some people broke up the East African community because they didnโ€™t see the benefit of the bigger market,โ€ he said.

Investors and institutions expected to play key role

The president noted that both public and private sector stakeholders are increasingly aligned on the need to invest in large-scale infrastructure projects that can unlock regional growth.

He pointed to the role of financial institutions such as the Africa Finance Corporation and industrial players like Aliko Dangote in supporting such initiatives.

โ€œThey also appreciate that it is their responsibility to invest in this infrastructure, because it makes them money and it grows their bank balance sheets,โ€ Ruto said.

Rising regional oil ambitions

The proposal comes as East African countries ramp up efforts to commercialise oil discoveries and strengthen energy security through regional cooperation.

Uganda and Tanzania are already advancing the East African Crude Oil Pipeline project, which will transport crude oil from Ugandaโ€™s oil fields to the Tanzanian port of Tanga for export to international markets.

A shared refinery in Tanga could complement these efforts by enabling local processing of crude, reducing import dependence and creating a more integrated regional energy market.

If realised, the project would mark a significant shift toward coordinated energy infrastructure development in East Africa, with potential benefits for supply stability, investment flows and economic growth across participating countries.

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