A new steel complex launched in eastern Uganda is expected to supply Uganda, Kenya, Rwanda and neighbouring markets, in a move East African leaders say will deepen regional value chains and strengthen efforts to build an integrated heavy-industry base in the region.
- •Kenyan President William Ruto, who joined Uganda’s Yoweri Museveni to commission the Devki Group’s vertically integrated Tororo Steel Industry on Sunday, said the plant underscores the East African Community’s (EAC) ambition to coordinate industrial policies and reduce reliance on imported steel.
- •Ruto said the project reflects the EAC’s “collective strength” and growing policy alignment as member states pursue manufacturing-led growth.
- •Kenya imported about 1.1 million tonnes of iron and steel in 2024, according to KNBS data, despite a drop of 8.9% from the previous year, at a total cost of KSh 101.8 billion.
“The establishment of this industry sends a powerful message that we have both the capacity and the courage to build globally competitive industries,” President Ruto said, describing the plant as a model for cross-border cooperation.
Museveni said the investment would enhance the region’s competitiveness and reduce the cost of steel for infrastructure projects, while Ruto reaffirmed Kenya’s readiness to collaborate with Uganda, Rwanda and other EAC partners on joint industrial ventures.
Africa’s steel market reached 39.5 million tonnes in 2024 and is expected to rise to 52 million tonnes by 2034, driven by infrastructure spending and industrialisation. Sub-Saharan Africa holds between 20–25 billion tonnes of proven and probable iron ore reserves, positioning it to meet rising domestic demand and compete in export markets, Ruto said.
The Tororo project is the latest in a series of regional investments by Devki founder Narendra Raval, whom Ruto hailed as a key figure in anchoring East Africa’s industrial capacity. Uganda and Kenya both say the new plant helps accelerate broader goals under the African Continental Free Trade Area, including value addition and intra-African trade.
The facility currently employs more than 400 workers, with Devki projecting up to 20,000 jobs across its East African operations by 2027 as production expands and new supply chains emerge. Officials say the plant will stimulate demand for transport, energy, construction and services across the region.
"As we reduce the USD 5 billion lost annually to imports and prepare for the Standard Gauge Railway to support such big industries, I can say the future is bright and even more investments will follow," Museveni said in a post on X.
Kenya's steel exports fell 12.6%, partly because of new levies that dampened outbound shipments. KNBS’s Construction Input Price Index for the third quarter of 2024 showed reinforcement steel costs rising to 170.93, up from 163.32 in Q2, contributing to construction inflation.
The plant could help stabilise regional supply, reduce price shocks and narrow Kenya’s steel import bill by substituting part of the offshore volumes with regionally produced products.
