UAE Energy Giants Expand Influence in East Africa: Aramco and Alpha MBM Drive Oil Projects in Kenya and Uganda

 

The United Arab Emirates (UAE) is solidifying its presence in East Africa's energy sector through strategic partnerships and investments. Notably, Saudi Aramco and Alpha MBM Investments are spearheading significant oil projects in Kenya and Uganda, respectively, marking a new era of energy collaboration between the Gulf and East Africa.​

Saudi Aramco Strengthens Kenya's Fuel Supply Chain

In a move to stabilize its fuel supply and economy, Kenya has extended its oil supply agreement with three Gulf state-owned energy companies: Saudi Aramco, Emirates National Oil Company, and Abu Dhabi National Oil Company. This renewed contract, effective towards the end of 2025, allows Kenya to purchase gasoline, diesel, kerosene, and jet fuel on a 180-day credit plan. The arrangement has eased the country's monthly demand for U.S. dollars for petroleum imports, stabilizing the shilling-dollar exchange rate and reducing pump prices for consumers. ​Reuters+1Reuters+1Reuters

The UAE's role in this deal underscores its growing influence in Kenya's energy sector. Trade between Kenya and the UAE has more than doubled over the past decade, with the UAE now being Kenya's sixth-largest export market and second-largest source of imports. ​Reuters

Alpha MBM Leads Uganda's $4 Billion Oil Refinery Project

Uganda has embarked on a transformative journey towards energy independence by partnering with UAE-based Alpha MBM Investments to construct a 60,000-barrel-per-day crude oil refinery in Kabaale, Hoima District. The agreement, signed on March 29, 2025, grants Alpha MBM a 60% stake in the refinery, with the Uganda National Oil Company retaining 40%. Uganda Broadcasting Corporation​

This $4 billion project is set to be fully financed through equity, marking a significant shift from traditional debt financing models. The refinery will include a modern storage terminal in Namwabula, Mpigi District, ensuring adequate fuel reserves for national consumption. Once operational, the facility will reduce Uganda's dependence on imported refined products, boost employment, and contribute to the country's industrialization efforts. unoc.co.ug​

Strategic Implications and Regional Impact

The UAE's investments in Kenya and Uganda signify a strategic expansion of its energy footprint in East Africa. By securing long-term supply agreements and investing in infrastructure projects, the UAE is positioning itself as a key player in the region's energy landscape.​

For East African nations, these partnerships offer opportunities to enhance energy security, foster economic growth, and build capacity in the oil and gas sector. However, they also necessitate careful consideration of governance, environmental sustainability, and equitable benefit-sharing to ensure that these developments translate into tangible improvements for local populations.​

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