President William Samoei Ruto Announces Kenya’s Interest in Uganda’s Oil Refinery
During the Africa We Build Summit 2026 held in Nairobi, President William Samoei Ruto outlined a new push for deeper energy cooperation between Kenya and Uganda. Speaking alongside Ugandan President Yoweri Museveni, Ruto said Kenya would consider investing in Uganda’s planned oil refinery, a move that could reshape petroleum logistics across the East African Community.
Context of East Africa’s Energy Landscape
Africa contributes roughly 10 million barrels of oil per day to global supplies, accounting for about 10 % of worldwide production, according to the International Energy Agency (IEA) 2023 report. Despite this output, the continent remains a net importer of refined petroleum products, relying heavily on refined imports from Europe, the Middle East and Asia.
Kenya’s own refining capacity has been limited since the shutdown of the Changamwe Oil Refinery in Mombasa in 2013. The facility was closed due to outdated technology, high operating costs and an inability to compete with cheaper imported refined fuels. Since then, Kenya has depended on the Kenya Pipeline Company (KPC) to transport imported refined products from the port of Mombasa to inland consumption centers.
Uganda, meanwhile, is advancing the Kabaale Oil Refinery project in the Albertine Graben region. The refinery, slated for completion in the mid‑2020s, aims to process Uganda’s nascent crude oil production and reduce the country’s reliance on imported fuels.
Statements from the Africa We Build Summit 2026
President Ruto recounted a conversation with President Museveni in which the Ugandan leader expressed a strong interest in acquiring a stake in the Kenya Pipeline Company:
“President Museveni called me and said, ‘I want to buy 50 percent of the Kenya Pipeline’ … and he told me, ‘I don’t care about the price.’ That’s how serious he is. President Museveni was able to look beyond the price – he saw the opportunity. I want to assure you that Kenya will invest in your refinery.”
Ruto further noted that the two heads of state have agreed to explore joint infrastructure projects, including a potential shared refinery facility. He cited the success of the Dangote Refinery in Nigeria — currently the world’s largest single‑train refinery with a capacity of 650 000 barrels per day — as a model for what could be achieved in East Africa.
In a broader vision, Ruto announced a pledge to mobilise up to US $40 billion in regional investments by 2030, covering energy, transport and industrial sectors. He emphasized that, should Uganda and Kenya move forward with the refinery collaboration, Kenya would be prepared to construct a facility comparable to the Dangote complex.
Implications for Regional Cooperation
The prospect of Kenyan investment in Uganda’s refinery carries several potential benefits:
- Enhanced energy security: A jointly operated refinery could reduce both nations’ dependence on imported refined products, buffering them against global price volatility.
- Infrastructure synergies: Leveraging the existing KPC network could streamline the transport of crude oil from Uganda’s fields to the refinery and the distribution of refined products to Kenyan markets.
- Economic integration: Collaborative projects of this scale align with the East African Community’s broader goals of fostering intra‑regional trade and industrialisation.
- Technology transfer: Partnering with experienced operators — whether through public‑private partnerships or firms like Dangote — could bring modern refining technology and best practices to the region.
Challenges and Next Steps
While the political commitment appears strong, several hurdles remain:
- Financial structuring: Determining the equity split, financing mechanisms and risk‑sharing arrangements will require detailed negotiations between the Kenyan Treasury, Uganda’s Ministry of Energy and potential private investors.
- Regulatory alignment: Both countries must harmonise licensing, environmental standards and taxation policies to create a predictable investment climate.
- Market dynamics: The refinery’s viability will hinge on securing long‑term crude supply contracts, competitive pricing for refined products and access to regional distribution networks.
- Implementation timeline: Large‑scale refining projects typically span five to seven years from feasibility study to commercial operation; stakeholders will need to agree on realistic milestones.
According to Kenya’s Ministry of Finance, a final decision on the scale and structure of any investment in Uganda’s refinery is still pending. Officials indicate that a feasibility study, expected to conclude later in 2026, will inform the next phase of negotiations.
President Ruto’s remarks at the Africa We Build Summit underscore a growing recognition among East African leaders that energy cooperation can serve as a catalyst for broader economic integration. Whether the proposed refinery materialises will depend on translating political will into concrete, bankable projects — a process that observers will be watching closely in the coming months.
