On September 30, 2026, President Yoweri Museveni of Uganda expressed his support for the construction of the $16 billion Dangote oil refinery in Lamu, Kenya. The refinery, which will process 700,000 barrels of crude oil a day, is one of the biggest refinery projects on the African continent. Museveni attended the groundbreaking ceremony in Mokowe, Lamu County, alongside Kenyan President William Ruto, Ethiopian Prime Minister Abiy Ahmed, and Nigerian billionaire Aliko Dangote.
The Dangote East Africa Petroleum Refinery is expected to create jobs and stimulate economic growth in the region. According to Dangote, the project will create about 60,000 jobs during construction, with a training school planned for 1,000 people in technical and engineering skills. The refinery is planned for Lamu Port along the LAPSSET Corridor and is expected to serve markets across East Africa. It could process crude from Kenya's Lokichar fields and other sources in the region.
Despite the significant investment in the Lamu refinery, Museveni emphasized that Uganda will proceed with its own 60,000-barrel-per-day refinery at Kabaale in Hoima. The Ministry of Energy says implementation agreements have been signed with UAE-based Alpha MBM Investments for the project, which is estimated at about $4 billion. Museveni stated that Uganda's refinery will produce for Uganda and the interior parts of Africa.
Museveni and Dangote share a vision for Africa to process more of its resources locally. Dangote said Africa had spent too long exporting raw materials and buying back finished products. Museveni cited coffee, cotton, gold, and petroleum among resources that Africa should process locally. He noted that when Uganda sells a bean of coffee, it gets $2 a kilo, but when it is roasted, ground, and packed, the one who did it gets $40.
The Lamu refinery project has been a collaborative effort between African leaders. Dangote said the project started from discussions with Museveni and Ruto. Ruto credited Museveni with pushing the idea, saying, "I want to thank our father, President Museveni. When we sat down with Aliko Dangote, it was your vision that brought us this far." Ruto assured Dangote that Kenya would protect his investment.
Ethiopian Prime Minister Abiy Ahmed also emphasized the importance of involving young Africans in projects like the Lamu refinery. He said East Africa is not only a market but also a place to build and create value. Abiy encouraged young Africans to become engineers and contractors, ensuring they directly benefit from such investments. Dangote has promised to commission the refinery within 40 months.
Museveni also called for the political federation of East Africa, arguing that deeper integration is needed for the region to fully benefit from investments. He stated that although regional countries could take shares in the refinery and earn returns, it does not answer the issue of jobs. The President made a similar case for Africa to process more of what it produces and keep more of the jobs and money that come with it.
Key points
- Uganda will proceed with its own 60,000-barrel-per-day refinery at Kabaale in Hoima despite the Lamu refinery project.
- The Dangote East Africa Petroleum Refinery is expected to create about 60,000 jobs during construction.
- President Museveni called for the political federation of East Africa to deepen regional integration.
