Museveni Says Uganda Will Not Invest in Lamu Refinery

Ugandan President Yoweri Museveni has backed Kenya’s planned Sh2 trillion refinery in Lamu, but said Uganda will not invest in the project as it continues with plans to build its own refinery.

Speaking at the groundbreaking ceremony in Lamu, Museveni said the project would support industrialisation in East Africa by enabling African countries to process their natural resources locally rather than exporting raw materials. He said Uganda remained committed to developing its own refinery after years of planning.

Museveni also said he would seek clarification from Tanzanian President Samia Suluhu Hassan on the status of an earlier proposal to establish a refinery in Tanga. The proposal had involved Kenya, Tanzania and Uganda, but appears to have stalled.

He said Uganda would first assess what happened to the Tanga plan before considering deeper involvement in the Lamu project. His position reflects the different approaches East African countries have taken towards regional energy projects, with governments also seeking to develop strategic industries within their own borders.

Museveni used the ceremony to argue that African countries had for decades failed to invest sufficiently in value addition and industrial development. He said continued exports of unprocessed commodities had limited the continent’s economic potential and left countries dependent on foreign markets for finished goods.

He described refinery projects as part of a broader effort to increase manufacturing capacity, retain more economic value within Africa and strengthen the continent’s position in global trade. The Ugandan president also called for greater regional labour mobility, saying East African integration should allow citizens from across the East African Community to seek employment in countries where major projects are being developed. 

He said regional integration should extend beyond investment and ownership to include access to jobs. The Lamu refinery is being spearheaded by Nigerian billionaire Aliko Dangote and is expected to be among Kenya’s largest infrastructure projects. Supporters say the development could create jobs, stimulate industrial activity and drive investment in supporting infrastructure along the coast.

The project also comes as Kenya, Tanzania and Uganda pursue separate refinery plans. The competing projects highlight the difficulty of balancing national development priorities with efforts to promote regional cooperation and integration.

Dangote’s refinery proposal was initially linked to Tanzania’s coastline before the focus shifted to Kenya following uncertainty surrounding the Tanga project. Public exchanges between Kenyan and Tanzanian leaders earlier this year raised questions about the future of the proposed joint venture and coincided with greater interest in Lamu as an alternative location.