President Museveni and his Kenyan counterpart William Ruto have launched a $500 million (about Shs1.78 trillion) steel plant in Utro Village, Kayoro Sub-county in Tororo District.
Spearheaded by the Devki Group of Companies, the project is expected to become the largest steel production facility in East Africa once completed.
The Tororo plant will be supplied with high-grade hematite containing 65 percent iron ore from Kabale, as well as magnetite with 50 percent iron content sourced from eastern Uganda.
Once operational, the facility is expected to significantly cut Uganda’s importation of steel products such as angle bars, iron sheets, and other construction materials.
Narendra Raval, the executive chairman of Devki Group, said the plant will help reduce Uganda’s trade deficit by more than $1 billion.
Uganda currently imports steel worth approximately $500 million annually.
He said the project will create an estimated 15,000 jobs, with more than 5,000 opportunities expected to benefit residents of Tororo alone.
The company has also pledged improved corporate social responsibility initiatives for surrounding communities.
The Minister of Energy and Mineral Development, Ruth Nankabirwa, described the steel plant as a major step toward achieving the government’s mineral value-addition strategy aimed at minimizing resource leakages.
She revealed that government signed a Mineral Development Agreement on April 2, 2025, binding both parties to work closely to ensure the plant is successfully established.
Kenyan President Ruto described the vertically integrated project as “a new chapter in Africa's industrial ambitions and a demonstration of the region’s commitment to sustainable development.”
He said the factory’s launch sends a strong signal that East Africa has the capacity to build competitive and reliable industries.
To bolster Uganda–Kenya economic cooperation, President Ruto announced that Kenya will construct a dual-carriage highway from Nairobi to Malaba to ease cross-border trade, followed by the completion of the Standard Gauge Railway (SGR) from Naivasha to Malaba.
In his remarks, President Museveni said the project represents part of the “liberation process of East Africa” and a break from historical exploitation of Africa’s resources.
He reiterated his firm stance against exporting unprocessed minerals, arguing that doing so deprives Ugandans of jobs in the value-addition chain.
Museveni also said Uganda will soon commence construction of its section of the Standard Gauge Railway to ease transport and reduce pressure on roads.
However, the President expressed disappointment over land acquisition challenges surrounding the project.
He condemned what he called fraudulent claims by some Utro residents who asserted ownership of government land and allegedly extracted money from the investor as compensation.
He said government would refund the investor and warned communities against seeking compensation for public land.
Museveni directed the First Deputy Prime Minister and Minister for East African Affairs to address the matter and ensure an appropriate resolution.
