The meeting between Uganda’s President Museveni and his Kenyan counterpart, Mr William Ruto, at the groundbreaking ceremony for a steel factory in Tororo District on November 23 is expected to unlock new opportunities for both countries and the wider region.
Mr Museveni and Mr Ruto agreed to extend the Standard Gauge Railway (SGR) to Uganda, co-own the Mombasa-Kampala oil pipeline, and upgrade Northern Corridor roads to boost investment and trade.
Speaking at the launch of the Devki Mega Steel Project, Mr Museveni said the factory would save Uganda the large sums it spends annually on imported steel.
‘Uganda is now squandering $500m (Shs1.8 trillion) per year to import flat sheets and the other metals from which we make mabaati (iron sheets) and make mitayibwa (iron bars). .So those intermediate products from mitayimbwa and mabaati are taking a lot of money,’ Mr Museveni said.
The Shs1.8 trillion Devki Mega Steel Project is owned by Mr Narendra Raval, a Kenyan entrepreneur with investments across Kenya, Uganda, and Rwanda.
Mr Museveni added that Mr Raval will also establish a major iron ore project in Kabale District, expected to create more than 16,000 jobs and expand industrial opportunities nationwide.
‘The cause of the stagnation of Africa is the haemorrhage of Africa’s resources like labour and resources. What we are doing here is not just launching a project. It is part of the liberation process of Africa,’ he said.
Mr Ruto hailed the project as a milestone in Africa’s industrialisation.
‘We convene here not just to commission a factory but we usher in a new, audacious chapter in Africa’s industrialisation ambition. It reflects a collective commitment to sustainable development, regional integration and pursuit of transformative impact for our present and future generations,’ the Kenyan President said.
He further announced that Kenya is divesting about 60 percent of the oil pipeline’s ownership to allow Uganda and private companies to co-invest before its extension to Kampala and beyond.
‘I thank you, Mr President, for agreeing to work with us. The ministers were in Nairobi last week and I have given the necessary guidance on the need for Uganda and Kenya, both public and private, to jointly own the Kenya Pipeline Company,’ Mr Ruto said.
He added: ‘Therefore, as the government of Uganda invests in the Kenya Pipeline Company, I want to encourage Ugandans and East Africans to equally invest because we will make shares available both to public entities, but more importantly to citizens of our region. So we can diversify ownership of the facilities that we have in our region.’
Oil pipeline ownership has long been a contentious issue between Uganda and Kenya. In 2023, Kenyan authorities declined to grant Uganda a licence to transport its products through the pipeline.
On December 28, 2023, Uganda sued Kenya in the East Africa Court of Justice, arguing that the restrictions violated UN conventions granting landlocked countries access to the sea.
Uganda even threatened to abandon the Kenyan pipeline and import petroleum products via Tanzania’s Dar es Salaam Port, a longer and costlier route.
Since nearly 70 percent of oil transported through the pipeline goes to Uganda, the move would have rendered the facility economically unviable. Kenya later reversed its position and granted Uganda a licence.
Mr Ruto confirmed that joint investment in the pipeline is progressing.
‘Let me reiterate that joint investment of the pipeline from Eldoret through Kampala to the border with DRC [Democratic Republic of Congo] and to Rwanda is in an advanced stage. The government of Kenya, we have given an approval for our two governments to work together to co-invest in extending that pipeline so that it can serve East Africa as we jointly own that facility,’ he said.
The Kenyan leader also revealed that the extension of the SGR from Naivasha Township to Uganda’s Malaba border will begin in January 2026.
‘In January, we will be launching the extension of the SGR from Naivasha to Malaba to Kampala and onwards to DRC. That project is to improve transport and logistics in our region so that we can be better competitive as a region that seeks to work together,’ Mr Ruto noted.
Uganda’s SGR progress
Uganda has already commenced preparations for its section of the SGR from Malaba to Kampala after securing funding. Turkish firm Yapi Merkezi has begun geotechnical surveys and mapping along the 273-kilometre corridor, with most of the land already acquired. This would end nearly two decades of waiting for the project. Mr Ruto added that on Friday he will launch road projects to construct dual carriageways linking Kenya-Uganda border towns of Busia and Malaba, aimed at easing congestion and improving trade.
‘I will be launching the dualling the road from Ririoni near Nairobi that will come all the way to Malaba. As you know Mr President, today that road is getting slower as traffic increases. Therefore, we have made a strategic decision to create a highway and dual that road so that we can facilitate faster movement of goods, people and services between Kenya, Uganda and East African hinterland,’ he said. The Kericho-Kisumu-Busia and Mau Summit-Eldoret-Malaba highways will also be upgraded into dual carriageways.
Mr Museveni praised Mr Ruto’s Pan-African vision and predicted a bright future for regional trade. ‘We are going to move very far. You have heard what he has said about the pipeline. These roads, the transport system, is now irrational. You need to rationalise it. Why is it irrational? The road, there are small cars. There are railways carry cargo, there are petrol tankers carrying petrol. All on the road. So we need to separate. Fuel, you go through the pipeline. Cargo and passengers to the railway. On the pipeline, I thank him and congratulate him. We are going to co-invest in it together up to the Congo border. People who steal oil from vehicles will not have a chance because it will be in the pipeline,’ he said.
Mr Raval noted that Mr Museveni had assured him Uganda would ban steel imports once his company begins production. ‘I am very happy to confirm in front of everybody that His Excellency assured me that once this company has started production of the steel, he will not put the duty but he will ban importation. We would like to make sure to protect our jobs. Why we are putting the duties and levies on the importation is to protect the jobs of our children,’ he said.
However, local steel millers that still rely on imported raw materials expressed concern, warning that such a ban could force them out of business. In an August 5, 2025 joint statement, Uganda’s iron and steel sector players protested the Tororo project, arguing that the government should have given them priority to invest in domestic steel production, given their decades of experience in the industry.
‘Stakeholders expressed deep disappointment over the lack of consultation regarding a joint plan by the Kenyan and Ugandan governments to establish what is slated to be the largest steel factory in the region. While acknowledging the potential benefits of such a large-scale project, industry players raised concerns that without involving the existing private sector, the new entity could create unfair, state-backed competition, potentially undermining decades of private investment in the local industry. The sector is calling for immediate and meaningful engagement with local players,’ read part of the joint statement.