President William Ruto has renewed calls for a joint East African oil refinery, saying regional cooperation will help Kenya, Tanzania, Uganda and South Sudan reduce exposure to global fuel price volatility.

Speaking during an address to Tanzania’s Parliament in Dodoma on Tuesday, May 5, 2026, Ruto underscored the need to process oil within the region to retain value and reduce reliance on external markets.

“Tukiungana Tanzania, Uganda na Kenya tutaweza kujenga refinery ndio tuhakikishe ile mafuta tunairefine hapa kwetu na pesa inabaki hapa kwetu badala ya sisi kwenda kungangana kule Strait of Hormuz kuleta mafuta,” he said.

Regional refinery plan and strategic shift

Ruto said the proposal aligns with broader regional efforts to strengthen industrial capacity and reduce dependence on imported refined petroleum products. The plan involves a shared refinery to serve multiple East African countries, leveraging existing oil resources and infrastructure.

He noted that exporting crude oil while importing refined products is no longer viable, calling for a shift toward local value addition. The proposed refinery is expected to support industrialisation, create jobs, and enhance energy security across the region.

The initiative also seeks to integrate oil production from Kenya’s Turkana fields with regional infrastructure, alongside cooperation with Uganda and Tanzania in developing processing capacity.

Oil price surge and global market pressures

The renewed push comes amid rising global oil prices linked to tensions in the Strait of Hormuz, a key route for global energy supplies. Brent crude prices rose above $110 per barrel in recent trading, reflecting supply concerns and market uncertainty.

Disruptions to shipping and security concerns in the Gulf have contributed to price volatility, affecting fuel costs in import-dependent regions. Ruto said regional refining capacity would help cushion East African economies from such external shocks.

He pointed to the need for long-term solutions that reduce reliance on distant supply chains and stabilise energy access within the region.

Regional engagement and implementation

The refinery proposal has been part of ongoing discussions between East African governments. During the Kenya-Tanzania Business Forum in Dar es Salaam on May 4, 2026, Tanzanian President Samia Suluhu Hassan raised concerns about consultation on the project, prompting further clarification from Kenya.

Ruto said the refinery presents opportunities for business growth and industrial expansion, positioning Tanzania’s Tanga region as a potential hub for refining and mineral processing.

The four countries have agreed in principle to pursue a shared facility, with discussions focusing on implementation frameworks, infrastructure alignment, and investment structures.

The proposal forms part of wider efforts within the East African Community to enhance economic integration through joint infrastructure and industrial projects.