Museveni to Talk to Suluhu Over Lamu Refinery as Uganda, Tanzania Push New Projects

LAMU, Kenya, Sep 30 – Ugandan President Yoweri Museveni has said he will engage Tanzanian President Samia Suluhu Hassan to establish what led to the relocation of the planned East African oil refinery from Tanzania’s Tanga to Lamu, Kenya.

Museveni said he would seek clarification on the circumstances surrounding the change of location as Uganda and Tanzania pursue their own plans to expand refining and petroleum infrastructure in the region.

The remarks come as Kenya formally launches construction of the proposed Sh2.2 trillion ($16 billion) East Africa Oil Refinery in Lamu, backed by Nigerian billionaire Aliko Dangote. The facility is planned to have a capacity of 700,000 barrels of crude oil per day and is expected to serve Kenya and other regional markets.

Museveni’s comments come against the backdrop of earlier discussions involving Kenya, Tanzania and Uganda on the development of a regional refinery.

The refinery had initially been associated with Tanga in Tanzania, partly because of Uganda’s oil infrastructure and the East African Crude Oil Pipeline (EACOP), which is designed to transport Ugandan crude to the Tanzanian coast.

President William Ruto had earlier announced discussions around a regional refinery in Tanga that would process crude from several East African producers. However, the refinery project later shifted towards Lamu, where Dangote has now commenced construction.

Dangote subsequently explained that Tanga had initially been considered because of its connection to Uganda’s planned crude pipeline, before Lamu emerged as the preferred location.

Museveni said he would discuss the issue with Suluhu as part of broader efforts to understand the factors behind the change.

The Ugandan President also advocated for the development of additional refinery capacity in Uganda and Tanzania, arguing that East Africa needs greater capacity to process crude locally and reduce reliance on imported refined petroleum products.

Uganda is separately developing a refinery at Hoima, with the facility intended to process Ugandan crude and supply petroleum products to the domestic and regional markets.

Tanzania and Uganda are also pursuing a proposed Tanga Regional Energy Hub, which is expected to include refining, storage, logistics, trading and distribution infrastructure. A memorandum of understanding involving the Uganda National Oil Company, Tanzania Petroleum Development Corporation and Vitol Bahrain was signed in August.

The Tanga initiative is linked to Uganda’s crude oil production and EACOP, which will transport crude from the Lake Albert region to the Chongoleani terminal near Tanga.

The shift to Lamu has placed Kenya at the centre of a rapidly changing East African petroleum landscape.

The Dangote refinery is expected to process crude from regional and international suppliers and produce petroleum products for Kenya and neighbouring countries. Reuters reported that the facility is expected to be completed in 2030.

The project is also expected to support petrochemical industries and create tens of thousands of jobs.

Dangote has announced that a training school will be established in Lamu to equip local engineers with skills required to work at the refinery and in related operations.

The project has received support from several regional governments, with Dangote offering regional governments a collective 30 percent equity stake in the refinery.

The development of the Lamu refinery, the Tanga energy hub and Uganda’s Hoima refinery is reshaping the region’s petroleum infrastructure.

Tanga has an established strategic link to Uganda’s crude through EACOP, while Lamu is being developed as a major new deep-water port and industrial hub.

Uganda is pursuing both domestic refining capacity at Hoima and participation in the Tanga petroleum hub, giving it multiple options for processing and distributing petroleum products.

The developments could also affect the movement of petroleum products to landlocked markets such as Uganda, Rwanda, Burundi, South Sudan and eastern Democratic Republic of Congo.

The growing investment in refining, storage, pipelines and ports is expected to increase regional competition while also creating opportunities for greater cooperation among East African countries.

For Kenya, the Lamu refinery forms part of a broader effort to position the coast as an energy and industrial hub linked to the LAPSSET corridor.

For Uganda and Tanzania, the focus remains on leveraging EACOP and Tanga while developing domestic and regional refining capacity.

Museveni’s planned engagement with Suluhu could therefore provide an opportunity for the two countries to clarify their respective refinery plans as East Africa develops multiple petroleum processing and distribution centres.