William Ruto, Kenya’s president, has recently committed to making a substantial investment in Uganda’s long-delayed oil refinery project.
Addressing participants at the Africa We Build Summit 2026 in Nairobi on Thursday, April 23, Ruto spoke passionately about the persistent energy imbalance across the African continent.
He pointed out that Africa produces close to 10 million barrels of oil daily, yet still spends about $90 billion annually importing refined petroleum products.
According to Tuko, Ruto referenced Nigeria as a clear example an oil-rich nation that has historically depended heavily on fuel imports from the Middle East despite its large crude oil reserves.
“Nigeria has been producing oil for years, yet when we visited, long queues formed at petrol stations until one African stepped up to build a refinery Aliko Dangote,” he said.
In acknowledging the strengthening cooperation between the two nations, Ruto praised Yoweri Museveni for backing Kenya’s pipeline infrastructure through participation in the Kenya Pipeline Company Initial Public Offering.
He explained that Kenya plans to return that confidence by investing in Uganda’s oil industry and broader economy.
The summit, organised by the Africa Finance Corporation in partnership with the Kenyan government, is being held from April 23 to April 24 and has drawn policymakers and investors focused on reshaping Africa’s infrastructure sector.
“President Museveni reached out to me expressing interest in acquiring 50% of the Kenyan pipeline and was not concerned about the cost. While some in Kenya believed the price was too high, he saw beyond it,” Ruto said.
“He recognised the opportunity to transform our region together. Mzee, I assure you that just as you invested in our pipeline, Kenya will invest in your refinery and in our shared future,” he added.
Uganda’s oil refinery initiative
In November 2025, Uganda formalised new agreements for the refinery project with investors from the United Arab Emirates.
The deal between the Ugandan government and Alpha MBM Investments LLC, led by Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, represents a key milestone toward the Final Investment Decision expected in July 2026.
By December 2025, the Uganda National Oil Company secured approval to raise up to $2 billion in financing from Vitol Bahrain E.C., part of global energy trader Vitol.
The funding, structured over seven years with an interest rate of roughly 4.9%, will support key infrastructure such as the refinery, storage facilities, and pipeline systems.
The proposed refinery, with a capacity of 60,000 barrels per day, will be located in Kabaale within Hoima District, and is expected to rank among East Africa’s largest downstream energy developments.
It will feature a 212-kilometre multi-product pipeline, a 320-million-litre storage terminal, and supporting water infrastructure, positioning Uganda as a potential regional energy hub.
Under the arrangement, Alpha MBM will hold a 60% stake in the refinery, while the Uganda National Oil Company will retain the remaining 40%.
Uganda has indicated that it spends over $2 billion each year on petroleum imports, reinforcing the need to develop domestic refining capacity.
Across the region, similar initiatives are gaining traction. Aliko Dangote has also expressed interest in supporting the development of a refinery in Tanzania that could rival his facility in Lagos.
The planned Tanzanian refinery will be situated in the port city of Tanga and connected to Mombasa via pipeline.
The project is expected to process crude oil from multiple regional producers, including the Democratic Republic of the Congo and South Sudan, making it a shared energy asset for East Africa.