- Kenya’s corporate sector has continued its determined push to expand across the region.
- In the latest high-profile move, Devki Group, led by billionaire industrialist Narendra Raval, has made a significant investment in Uganda.
- The leading Kenyan construction materials company has opened a new steel manufacturing plant in Tororo, marking a major milestone in its regional expansion.
- The steel plant groundbreaking bore all the hallmarks of a state occasion, attended by Uganda’s President Yoweri Museveni alongside Kenya’s President William Ruto.
- Devki’s ambitious commercial maneuver came against the backdrop of recent diplomatic tensions between the two countries, sparked by Museveni’s outrageous claim over Kenya’s territorial waters in the Indian Ocean.
- Despite occasional tussles, the Ugandan market continues to attract growing investment from Kenya, with firms such as Stabex International, KCB Group, and Equity Group Holdings also expanding into the country.
Inside the New Devki Steel Plant in Uganda
Devki Group has committed USD 500 million to what is being hailed as a transformative development for Uganda’s construction sector.
The new steel plant will be located in the Tororo District of eastern Uganda, a region already renowned for its cement production.
Engineers plan to deploy advanced blast furnace technology to produce high-quality steel for use across Uganda’s construction sites.
While drastically cutting down Uganda’s steel import expenses, the new plant is projected to create over 10,000 direct jobs for Ugandans.
The project appears to have the backing of the Kenyan and Ugandan governments, with President Museveni promising to cut steel imports to support local production.
Devki joins other established Kenyan companies operating in Uganda’s banking, energy, and various other sectors.
Business Prevails Over Diplomatic Tensions as Kenyan Companies Court Ugandan Consumers
The Men in Gray Suits appear to have chosen profits over conflict, as trade between Kenya and Uganda is booming despite the ongoing serious diplomatic crises over territorial waters.
President Museveni’s recent remarks on the election campaign trail sent shockwaves in Nairobi, sending top Kenyan officials scrambling to quell the tension.
Kenyans reacted angrily after Museveni declared that his country owns the Indian Ocean and threatened future wars if denied access.
This frivolous claim follows a long-standing dispute over Lake Victoria’s Migingo Island between Kenya and Uganda. Geography places the island right on the border line between the two countries.
“How can you say that if you are in a block of flats, the compound belongs to only the flats on the ground floor. The compound belongs to the whole block. That ocean belongs to me, am entitled to that ocean, and in the future we are going to have wars,” said Museveni, using an apartment tenancy analogy.
A visibly startled Kenya Foreign Affairs Minister Musalia Mudavadi emerged from his office to address the media, emphasizing that there were no plans to restrict Uganda’s access to the sea.
Kenya’s official diplomatic stance was further reinforced by President William Ruto, who personally assured Ugandans of continued seamless access to Kenya’s ports and supporting infrastructure.
According to President Ruto, the media had exaggerated Museveni’s remarks, creating unnecessary apprehension. Amid rising public anger and confusion in Kenya, Ruto traveled to Uganda, accompanied by Narendra Raval, to launch construction of the Devki steel plant.
In recent years, Kenya has faced provocative statements from senior Ugandan figures, including Chief of Defense Forces General Muhoozi Kainerugaba.
A Sandhurst Military Academy graduate with prior service in Uganda’s Special Operations Command, the Army General has previously issued threats to capture Nairobi.
President Museveni was compelled to apologize for his reckless remarks, with the Ugandan government emphasizing that its official foreign policy positions are not expressed through random tweets.
Meanwhile, General Muhoozi has visited the Department of Defense headquarters in Nairobi on several occasions, including February 2025, in line with joint military and security obligations between the two countries and the broader East African region.
These diplomatic flare-ups appear to be smokescreens, as significant business and security engagements continue uninterrupted.
