Uganda and Kenya aim to resolve petroleum import deadlock

Summary:

• Ugandan President Museveni and Kenyan President Ruto discussed the petroleum import dispute between their countries. While details were scarce, Ruto expressed optimism about finding solutions for competitive pricing and logistical efficiency. Tensions arose after Kenya denied Uganda’s oil company licenses, prompting legal action. Uganda is exploring alternative routes through Tanzania for fuel imports.

Uganda’s President Yoweri Museveni and Kenyan counterpart William Ruto engaged in discussions on Monday to address the ongoing disagreement concerning Uganda’s importation of petroleum products through Kenya.

While a statement from the Ugandan State House confirmed that the leaders discussed “matters of mutual interest,” it provided limited details. However, Ruto conveyed a more optimistic outlook on social media, indicating, “We have agreed on a path forward for sourcing and scheduling imports for the region in a manner that ensures competitive pricing and logistical efficiency.”

The Kenyan leader also underscored the importance of revisiting plans for constructing a pipeline linking Eldoret, Kampala, and Kigali for transporting refined petroleum products.

These discussions unfold against a backdrop of heightened tensions between the two East African nations. In December, Uganda lodged a case against Kenya with the East African Court of Justice after Nairobi denied a license to Uganda’s government-owned oil company (UNOC) to operate locally and handle fuel imports bound for Uganda. This action followed Kenya’s refusal in November to grant UNOC a license to operate as a local oil marketer, prompting Uganda to seek legal recourse.

Landlocked Uganda, reliant on neighboring countries for fuel imports, has explored alternative routes through Tanzania as a potential resolution to the current deadlock with Kenya.