East Africa is positioning itself for a new economic era as Uganda and Kenya move towards commercial oil production in 2026, with petroleum increasingly emerging as a driver of regional infrastructure, investment and trade. Uganda is on course for First Oil before the end of the year, with the country having already drilled 228 oil wells against the 170 required for production.
Petroleum Authority of Uganda Senior Facilities Engineer Andrew Ssennabulya, speaking on 13th August 2026, said the remaining work on the wells is mainly the installation of production tubing, which is faster than drilling. But the bigger task is completing the infrastructure that will allow Uganda’s crude to flow from the oil fields to international markets.
The Tilenga Central Processing Facility in Buliisa was 68.6 percent complete by the end of July 2026 while the Kingfisher facility in Kikuube had reached 99 percent and was undergoing commissioning.
The East African Crude Oil Pipeline, EACOP, was 91 percent complete. Petroleum Authority of Uganda Director of Legal and Corporate Affairs Ali Ssekatawa says Uganda cannot declare First Oil until the major projects are ready to operate together. “The three flagship projects, Tilenga, Kingfisher and EACOP, must be ready for us to announce First Oil, because they are synchronized,” said Ali. Tilenga is expected to produce about 190,000 barrels per day, while Kingfisher could add another 40,000 barrels, giving Uganda a projected peak output of 230,000 barrels per day.
But Uganda is not only preparing to produce oil. It is also positioning itself inside the regional infrastructure that moves petroleum. Through the Uganda National Oil Company, Uganda has acquired a 20.15 percent stake in Kenya Pipeline Company, KPC. President William Ruto, speaking in March 2026, revealed that President Yoweri Museveni had initially sought a 50 percent stake in KPC.
Ruto said Museveni’s argument was based on Uganda’s heavy reliance on the Kenyan petroleum transportation system. “When you inquired about the pipeline, with the intention of Uganda wanting to acquire 50 per cent, I managed to talk to you, and we reached an agreement that we begin with a few stakes, which you accepted,” Ruto said. The eventual 20.15 percent stake has given Uganda a strategic position in KPC, with two Ugandan officials joining the company’s board in July 2026.
The investment takes on greater significance as Uganda moves from being a major petroleum importer through Kenya to becoming an oil producer. Kenya is itself moving in the same direction. On April 14, 2026, Energy and Petroleum Cabinet Secretary Opiyo Wandayi said commercial drilling would begin in the South Lokichar Basin in Turkana, with Kenya targeting the resumption of crude oil exports by December. Ten days later, on April 24, the government formally launched development of the South Lokichar oil fields. Kenya’s initial production target is about 20,000 barrels per day, with output expected to rise to 50,000 barrels per day from 2032.
The simultaneous development of the two petroleum industries could transform the economic relationship between the two countries. For years, Uganda has depended heavily on Kenya’s petroleum infrastructure to receive imported fuel through the Port of Mombasa.
Now Uganda is developing its own crude production and export route through Tanzania while maintaining an ownership position in Kenya’s pipeline system. Kenya, meanwhile, is seeking to turn its oil reserves in Turkana into commercial production. This could create opportunities beyond crude exports from logistics and manufacturing to roads, energy, technology, local businesses and employment.
For resource-producing communities, however, the promise is ultimately measured in tangible benefits. Uganda’s petroleum authorities say local-content requirements are already generating employment and business opportunities, while project-affected communities have been compensated and resettled.
The region is also preparing its institutions for the legal and economic consequences of a growing oil industry. Bank of Uganda Governor Michael Atingi-Ego has projected that Uganda’s current account could move into surplus within three to four years, supported by oil exports. Chief Justice Flavian Zeija has meanwhile stressed the importance of a functioning justice system as petroleum investment expands. “Investor confidence hinges on how quickly courts resolve disputes,” reiterated Flavian.
