Kenya and Uganda Make Progress in Resolving Petroleum Import Issues, Says President Ruto

Fox Onyango
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Fox Onyango
Business news publisher at The Daily Handle. Business, markets, investments and real estate editor covering the East African Community.
3 Min Read

Kenyan President William Ruto has conveyed optimism regarding the resolution of issues affecting the transportation of petroleum products between Kenya and Uganda. President Ruto expressed satisfaction with the ongoing efforts to address these challenges, emphasizing the importance of achieving competitive pricing and logistical efficiency in the sourcing and scheduling of imports for the region.

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President Ruto shared his remarks via X, formerly known as Twitter, shortly after his meeting with Ugandan President Yoweri Museveni at the latter’s Kisozi farm in Gomba district. During their discussions, the two leaders deliberated on various strategies to overcome obstacles hindering the smooth flow of petroleum products between their respective countries.

The Kenyan president’s statement follows recent developments in Uganda’s exploration of alternative routes for importing petroleum products. With negotiations progressing swiftly with the Tanzanian government, Uganda aims to utilize the port of Dar es Salaam as a viable alternative route for direct imports from overseas refineries. This shift comes in the wake of challenges encountered in utilizing Kenya’s oil pipeline, which encountered obstacles last month.

Notably, President Ruto and President Museveni also addressed the imperative of advancing the conceptualized Eldoret-Kampala-Kigali refined petroleum product pipeline. Recognizing the significance of infrastructure development in enhancing regional connectivity and economic cooperation, the leaders emphasized the urgency of initiating and completing this critical project.

Ugandan Energy Minister Ruth Nankabirwa echoed the sentiment of prioritizing the Tanzanian route for petroleum imports during her recent meeting with Tanzanian President Samia Suluhu in Zanzibar. She underscored Uganda’s commitment to strengthening cooperation with Tanzania and enhancing the supportive infrastructure necessary for facilitating petroleum imports through this route.

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Currently, Uganda relies predominantly on imports for its petroleum products, with over 90% sourced through the Mombasa Port in Kenya and the remainder via the Dar-es-Salaam port in Tanzania. However, recent developments have prompted Uganda to explore alternative avenues for importation to mitigate disruptions and ensure a reliable supply chain.

The decision to explore the Tanzanian route comes amid legal complexities surrounding the utilization of the Kenyan pipeline. Challenges arose following a petition filed in the Kenyan High Court, which temporarily halted the licensing process for Uganda National Oil Company Limited (UNOC) to facilitate petroleum imports. Despite these legal hurdles, efforts are underway to navigate these challenges and secure alternative means for importing petroleum products into Uganda.

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Business news publisher at The Daily Handle. Business, markets, investments and real estate editor covering the East African Community.
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