President Ruto says Tanga Refinery idea came from regional dialogue

President William Ruto has defended his remarks on a proposed oil refinery in Tanga, saying the idea was drawn from ongoing regional discussions after Tanzanian President Samia Suluhu Hassan questioned the basis of the announcement.

The issue came to the fore during a joint engagement on Monday where Suluhu revealed she had directly sought an explanation from Ruto over the statement, saying it had been made without her knowledge.

“When we were having a conversation, I asked Ruto why he announced a refinery in Tanga without my knowledge, he will say why he announced it,” she said as she invited him to respond.

In his response, Ruto said the proposal should not be seen as a personal declaration but part of wider talks among East African leaders focused on growing their economies through joint investments.

“Allow me to explain our discussion on Tanga as a place of refinery. I have been informed that my decision to announce the building of a refinery in Tanga has not sit well with you (Tanzanians). If I knew, I would have announced that refinery to be built in Mombasa,” he said.

He explained that the idea of setting up a refinery in Tanga came up during discussions on how countries in the region can process their oil, minerals and agricultural produce locally instead of exporting them in raw form.

Ruto said leaders, including Ugandan President Yoweri Museveni have been part of the conversations, with Kenya, Uganda and other partners showing interest in working together if the plan moves forward.

He noted that Tanga’s location near Mombasa, about 190 kilometres apart, could support coordination of fuel systems and ease the movement of refined products across the region.

Ruto also said the proposal is linked to a broader plan to build capacity for processing minerals within East Africa, warning that exporting raw materials continues to cost countries jobs and income.

“As we discuss Tanga as a refining hub, we must also consider positioning it as a centre for processing minerals. It is no longer sustainable for us to export raw materials. As a region, we must deliberately avoid exporting value, jobs and opportunities. Instead, we must retain and utilise them locally. That is the future of our development,” he said.

He added that private sector players have raised concern over the continued export of unprocessed resources, saying the approach leads to loss of wealth while increasing economic pressure.

“The private sector has made it clear that the continued export of raw materials results in exporting jobs, opportunities and wealth, while importing inflation, an approach that is counterproductive. I have engaged with Tanzanian leadership on the need for the country to take the lead in ensuring that regional resources are used effectively,” Ruto said.

The discussion comes weeks after Nigerian businessman Aliko Dangote proposed the construction of a major oil refinery in East Africa during the Africa We Build Summit in Nairobi.

Dangote said the project could mirror his refinery in Nigeria with a capacity of 650,000 barrels per day and could be completed within five years if governments in the region provide support.

He urged Kenya and Uganda to take the lead, saying African countries have the capacity to finance large industrial projects without heavy reliance on external investors. Both Ruto and Museveni attended the summit where the proposal was presented.