Ugandan President Yoweri Museveni has backed the construction of the Sh2.2 trillion oil refinery in Lamu but said his country will not invest in the project for now, introducing a significant regional dimension to one of Kenya’s biggest proposed industrial investments.
Museveni made the remarks during Wednesday’s groundbreaking ceremony in Lamu, where he joined President William Ruto and Nigerian billionaire Aliko Dangote.
While supporting the refinery and the broader push for African countries to process their own resources, Museveni said Uganda first wants clarity over an earlier refinery proposal involving Tanga in Tanzania before committing money to the Lamu development.
The position highlights the competing energy strategies emerging across East Africa as countries seek to develop infrastructure around crude oil, petroleum products and regional trade.
The Lamu refinery is expected to have the capacity to process about 700,000 barrels of crude oil per day when completed.
Kenya has been allocated an opportunity to acquire a 10 per cent stake in the project, while other East African governments have also been offered equity. Treasury Cabinet Secretary John Mbadi has indicated that Kenya could increase its shareholding if other countries do not take up their allocations.
For Kenya, the project is being presented as more than an oil refinery. The government expects it to stimulate investment around Lamu Port and the wider LAPSSET corridor while reducing reliance on imported refined petroleum products.
Ruto has also said the construction phase could support approximately 60,000 direct and indirect jobs.
Museveni’s position, however, demonstrates that regional participation cannot be taken for granted.
Uganda is itself an emerging oil producer and has spent years developing infrastructure associated with its petroleum industry. Decisions over where crude is processed and how refined products are distributed therefore carry major commercial and geopolitical implications.
Construction of the Lamu refinery is expected to take about 40 months.
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