A leading Kenyan petroleum exporter has played down concerns that Uganda’s planned $4 billion oil refinery could undermine its business, saying the project is unlikely to significantly disrupt regional fuel trade in the foreseeable future. Kenya Pipeline Company (KPC), which handles the bulk of refined fuel exports from Kenya into Uganda and other neighbouring markets, said the refinery would not materially affect its operations for many years, according to Business Insider Africa.
The Uganda refinery, being developed by the Uganda National Oil Company in partnership with Dubai-based Alpha MBM Investments, is expected to have a processing capacity of about 60,000 barrels per day once completed. However, KPC managing director Joe Sang said it could take up to 15 years before the facility has a meaningful impact on regional fuel flows, noting that East Africa’s fuel demand is likely to remain strong during that period, as reported by The Star.
Sang also pointed to the integrated nature of global oil markets, where refined products compete largely on price and scale rather than geography alone. He said imports through Kenya’s infrastructure would continue to play a central role in supplying Uganda and the wider region, even after the refinery comes on stream.
The comments come as KPC advances plans to expand its pipeline network and prepare for an initial public offering. Analysts say the remarks signal confidence in Kenya’s long-term position as a regional energy logistics hub, despite growing investment in upstream and refining capacity across East Africa, according to market commentary cited by Business Insider Africa.
