Nairobi. East African leaders have unveiled a strategic plan to construct a multi-billion-dollar oil refinery in Tanzania.
This initiative aims to establish energy sovereignty across the region.
The announcement was made during the Africa We Build Summit on April 23, 2026.
Kenyan President William Ruto and Ugandan President Yoweri Museveni confirmed the joint venture.
The facility will be located in the coastal city of Tanga.
Industrialist Aliko Dangote has committed to leading the development.
The project is expected to mirror the scale of his existing refinery in Nigeria.
Construction is projected to take approximately five years to complete.
The refinery will process crude oil from several regional partners.
Feedstock will be sourced from Uganda, the Democratic Republic of Congo, and South Sudan.
Kenya also plans to contribute resources from its South Lokichar fields.
This development serves to complement the East African Crude Oil Pipeline.
The 1,443-kilometre pipeline is currently 82 percent complete.
It will transport crude from Uganda’s Lake Albert basin to the Tanzanian coast.
Regional leaders believe the refinery will reduce the heavy reliance on imported fuels.
Current global supply chain disruptions have increased the urgency for domestic processing.
The project is intended to lower fuel costs and protect local economies from global price shocks.
A secondary pipeline is also planned to link Tanga with the Kenyan port of Mombasa.
This will create an integrated energy grid for the broader hinterland.
The network will eventually supply refined products to Rwanda and Burundi.
Uganda is simultaneously progressing with its own 60,000 barrel-per-day refinery in Hoima.
Kenya has expressed interest in taking an equity stake in the Ugandan facility.
These cross-border investments signal a shift towards deep economic integration in the energy sector.
Financial experts suggest the Tanga project will require significant sovereign guarantees.
Stability in the regulatory environment will be essential for the construction cycle.
If successful, the refinery will transform East Africa into a major industrial hub.
