12.3 C
New York
Monday, March 4, 2024

Buy now

Uganda to take over petroleum import market with or without licence from Kenya after accusing Nairobi of frustration

The government Uganda says it will start importing petroleum products effective February 2024, with or without licence from Kenya.

A diplomatic tiff is threatening to brew following President William Ruto’s administration’s failure to award Uganda a licence to import fuel. 

The Ugandan government intends to replace oil marketing companies with the state-owned Uganda National Oil Company (UNOC) as the sole importer of oil products.

UNOC said it will not be involved in transportation of the products to Uganda. 

But for UNOC to enter the import business, it needs a licence from the Kenya government, which has not been forthcoming.

This comes after Ugandan President Yoweri Museveni, on November 7, accused Kenyan middlemen in the oil sector of inflating fuel prices in his country. 

As such, he directed the state-owned Uganda National Oil Company (UNOC) to start the importation of oil, a decision that was ratified by the Ugandan parliament a week later. A month later, UNOC has yet to roll out the importation of fuel and continues to rely on oil marketing companies from Kenya.

Uganda had filed an application with the Energy and Petroleum Regulatory Authority (EPRA) to be recognised as an Oil Marketing Company (OMC) in Kenya.

However, the government of Kenya is yet to ratify the Uganda’s plea.

Reprieve for Kenyans as EPRA reduces fuel prices

2,000 Kenyans leave for Saudi Arabia weekly – Diaspora Affairs PS

Video of police dragging UDA MP at Nyayo House emerges

Ruto spends Ksh14 billion for subsidies in 3 months despite campaigning against the program; CoB report

Kenyan sector with high employment rate; World Bank report

80-year-old unmarried, childless billionaire leaves Ksh1.6T wealth to his gardener

Reports alleged that Kenya feared Uganda would enjoy its infrastructure despite reneging on their initial oil deal. 

According to reports, Kenya was afraid that Uganda would take advantage of its infrastructure despite reneging on their initial oil deal. 

Among other things, Uganda was charged with not presenting proof that it operated a licensed depot in Kenya and five retail locations with permits.

Uganda has now given notice that, as of February 2024, it would begin importing petroleum products on its own. 

Uganda reportedly promised to import the fuel via Mombasa Port  with or without the licence. 

UNOC, in its plan, wants to concentrate only on the importation process so as not to be subjected to inflated fuel prices by Kenyan Oil Marketers. 

“Why not buy from the refineries abroad and transport through Kenya and Tanzania, cutting out the cost created by middlemen?” Museveni had directed UNOC. 

The Ugandan oil corporation thus stated that it would not be involved in the transportation of the fuel once it landed in Mombasa. 

Also read,

Uhuru administration intalled fake generators at JKIA; DP Gachagua

State House journalists are unqualified to report financial figures; David Ndii

Former Treasury CS acquitted of Sh63 billion Arror and Kimwarer dams scandal

Government proposes an increase in road maintenance levy

40 passengers injured after dawn road accident in Londiani

Follow us



Stay Connected


Latest Articles