Kenya gives in to Uganda over oil import feud
Kenya to permit the Uganda Oil Corporation (UNOC) to import fuel through the country ending months of a major feud between the two countries
Kenya to permit the Uganda Oil Corporation (UNOC) to import fuel through the country ending months of a major feud between the two countries.
Energy Cabinet Secretary Davis Chirchir on Wednesday said that work was in progress to issue a permit that will allow Unoc to import fuel directly through Kenya Pipeline Company (KPC).
“You will see Unoc getting a licence and then we will see how to work together because usage of our pipeline is an opportunity for us,” Mr Chirchir said.
“They will employ Kenya Pipeline Company’s infrastructure so there will be no loss of opportunity, the transporter will remain KPC. We are working closely with Uganda to resolve the challenge.”
The CS’s revelations came days after a case filed at the High Court in Machakos to block the licensing of Unoc was withdrawn.
Sources said the licence is likely to be issued next month. The licensing could end the dispute and allow Unoc to buy fuel from Vitol Bahrain.
Uganda in 2023, complained of being frustrated by Kenya in the importation of the crucial commodity.
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As the stalemate escalated, Uganda turned to Tanzania for its imports.
The Energy and Petroleum Regulatory Authority (EPRA) had refused to award UNOC a certificate of business, blocking Uganda’s bid to import on its own.
In December last year, Ugandan Energy Minister Rutth Nankwabirwa revealed that despite the Tanzania route being more expensive, it was a better option since the country was avoiding a shortage crisis.
“You cannot sit there and be at the mercy of one person. We know that the alternative route might be expensive because of the logistics involved but we also know that there is a possibility of negotiation with the Tanzanian government to waive some taxes so that their sister country can be able to do business,” Nankabirwa remarked.
A diplomatic row ensued thereafter with Uganda suing Kenya at the East African Court of Justice (EACJ) seeking to have a license of operation.
However, this development may see the case dropped and UNOC get a license in April.
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