Refinery rivalry: billion‑dollar oil projects expose East Africa’s long‑running regional tensions

What the report says

The Independent Uganda reported that new oil-refinery and pipeline plans are again exposing long-running rivalries among East African states over who controls major energy infrastructure and transport routes. The piece focuses on Uganda, Kenya and Tanzania, where competition over ports, corridors and refinery sites has repeatedly complicated regional integration efforts.

According to the article, Uganda discovered oil in 2006 and later agreed with Kenya in 2014 to pursue a joint crude pipeline to Kenya’s coast, but that plan was abandoned by 2016 after disagreements over route, security, land compensation and the influence of foreign oil interests. Uganda instead moved toward a Tanzania route, and the East African Crude Oil Pipeline is now described as nearing completion, with first oil expected in 2027.

The report also says Kenya’s President William Ruto and Uganda’s President Yoweri Museveni announced plans for a refinery project linked to Nigerian businessman Aliko Dangote, first discussed for Tanzania and later shifted to Lamu in Kenya. Tanzania’s President Samia Hassan said she had not been consulted, and Uganda and Tanzania then signed a memorandum with commodity trader Vitol Bahrain for a separate US$20 billion energy hub in Tanga.

The article argues that the latest announcements show how commercial decisions by outside investors often shape the outcome, while governments continue to frame projects as regional wins. It adds that a refinery could be economically useful because East Africa still imports most of its fuel despite large oil and gas reserves.