President Yoweri Kaguta Museveni has welcomed plans for a 700,000-barrel-per-day oil refinery in Lamu, Kenya, saying the project should complement planned refineries in Uganda and Tanzania and strengthen East Africa’s industrialisation agenda.
President Museveni made the remarks during the groundbreaking ceremony for the proposed Dangote East Africa Petroleum Refinery and Petrochemicals Special Economic Zone in Mokowe, Lamu County, where he joined Kenyan President William Ruto, Nigerian industrialist Aliko Dangote and other African leaders.
Museveni said Uganda remains committed to developing its own refinery to process the country’s crude oil for domestic consumption and supply markets in the interior of Africa.
“We are going to build a small refinery in Uganda. We had planned this long ago. We can’t change that. The refinery will produce for Uganda and for the interior parts of Africa,” President Museveni said.
Museveni backs multiple regional refineries
The Ugandan President said there was no contradiction in having several refineries across East Africa, provided countries coordinate their investments and pursue shared economic interests.
He said the proposed refinery in Lamu could operate alongside planned facilities in Uganda and Tanzania, while Nigeria continues to expand its own refining capacity.
“The refinery here in Lamu can be there. The one in Tanga can be there. The one in Uganda will be there. The one in Nigeria can also be there. But I’m really happy with this one at Lamu too,” Museveni said.
Museveni also said he would revisit earlier discussions with Tanzanian President Samia Suluhu Hassan regarding a proposed refinery in Tanga to establish what had stalled the project.
President calls for value addition
President Museveni used the occasion to renew his call for African countries to process their raw materials locally instead of exporting them in raw form and importing finished products.
He cited coffee, cotton and gold as examples of commodities that can generate significantly more income when processed within Africa.
According to Museveni, processing coffee from raw beans into roasted, ground and packaged products can substantially increase its value while creating additional employment opportunities.
He said the same principle applies to cotton, where economic opportunities extend from farming and ginning to spinning, weaving, textile production and manufacturing.
Museveni argued that Uganda’s decision to pursue domestic oil refining was aimed at ensuring that the country captures more economic value from its petroleum resources.
Museveni renews call for East African integration
The President also renewed his call for deeper political and economic integration among East African countries.
He argued that greater integration would enable countries in the region to share employment opportunities, markets, infrastructure and revenue while making it easier to process and trade resources across borders.
Museveni cited discussions with President Ruto regarding an iron ore processing factory in Mombasa, questioning how Uganda would benefit if its raw materials were processed in Kenya but Ugandans had limited access to the resulting employment opportunities.
He said deeper regional integration could help address such challenges by facilitating the movement of people and allowing citizens from member states to participate more fully in regional industries.
Ruto says refinery will transform East Africa
President William Ruto described the Lamu groundbreaking as an important step towards transforming Kenya and the wider African economy through industrialisation, energy security and value addition.
“Today we break ground in Lamu. We turn a proposal into an industry. We transform a long-held ambition into real opportunity for Kenya, for East Africa and for our continent, Africa,” Ruto said.
He said the refinery would have the capacity to process up to 700,000 barrels of crude oil per day and serve markets across East Africa and beyond.
Ruto also emphasised the importance of ensuring that communities in Lamu benefit from the investment through employment, skills development and opportunities for local businesses.
He said technical and vocational institutions, as well as universities, should prepare welders, technicians, engineers and managers to meet the project’s labour requirements.
Local businesses are also expected to participate in areas such as transport, accommodation, food services, construction, logistics, maintenance and professional services.
Dangote promises jobs and skills development
Dangote Industries Limited Chairman and Chief Executive Officer Aliko Dangote said the refinery would help strengthen Africa’s industrial capacity by reducing dependence on imported petroleum products and retaining more value within the continent.
“Africa cannot build lasting prosperity by exporting what it has and importing what it needs. We must produce more of what we consume; we must process more of what we produce,” Dangote said.
Dangote said the project would create opportunities across the energy, petrochemical, engineering, logistics and manufacturing sectors.
He announced plans for a training school that would equip 1,000 local residents with technical and engineering skills.
The project is also expected to support approximately 60,000 jobs during construction, while local businesses will be encouraged to participate in the refinery’s supply chains.
Dangote said he expected to return to Kenya to commission the facility within 40 months of the groundbreaking.
The refinery is planned to include petrochemical production and power-generation facilities in addition to its crude oil processing operations.
East African countries offered refinery equity
Dangote said up to 30% of the refinery’s equity had been earmarked for East African countries, allowing participating states to share in the investment’s returns.
The proposed facility is planned for Lamu Port along the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, a major regional infrastructure project connecting Kenya with Ethiopia, South Sudan and other markets.
The refinery is expected to process crude from Kenya’s Lokichar oil fields in Turkana and potentially other sources within East Africa.
Its intended markets include Kenya, Uganda, Tanzania, Ethiopia, South Sudan, the Democratic Republic of Congo and other regional markets.
The investment is estimated at approximately $16 billion and is expected to support downstream industries such as petrochemicals, fertiliser manufacturing, packaging and other petroleum-related businesses.
The project is also expected to complement existing and planned regional infrastructure, including the East African Crude Oil Pipeline (EACOP) connecting Uganda’s oil fields in Hoima to the Tanzanian port of Tanga.
African leaders attend Lamu groundbreaking
The groundbreaking ceremony brought together leaders and representatives from across Africa, including Togolese President Jean-Lucien Savi de Tové, Benin’s President and Ethiopian Prime Minister Abiy Ahmed Ali.
Former Nigerian President Olusegun Obasanjo also attended, alongside delegations from Burundi, Rwanda, South Sudan, Tanzania and other countries.
Lamu County Governor Issa Timami welcomed the investment, saying it could create new opportunities for employment, business growth and infrastructure development in the region.
The proposed refinery is expected to contribute to regional energy security and support the broader objective of increasing local processing of Africa’s natural resources.
For Uganda, the project also comes amid the country’s continued plans to develop its own petroleum industry, with President Museveni maintaining that domestic refining and value addition are central to maximising the economic benefits of Uganda’s oil resources.
