Kenya and Uganda have initiated discussions to extend the petroleum products pipeline from Eldoret to Kampala. This announcement was made by the Kenya Pipeline Company (KPC) on Tuesday.

Uganda’s Energy Minister, Ruth Ssentamu, met with key officials from Kenya’s Energy Ministry last week, including Principal Secretary Mohammed Liban. The delegation also toured the KPC headquarters in Nairobi.

The proposed pipeline extension involves Kenya constructing a multi-product pipeline from Eldoret to the Kenya-Uganda border town of Malaba, approximately 127 kilometers from Eldoret. Uganda will construct a connecting line from Malaba to Kampala, which is about 236 kilometers. There are also plans for potential future expansion to Kigali, Rwanda.

“Extension of the pipeline to Uganda is a strategic move for Kenya as the country seeks to regain its competitive advantage in the petroleum export market, particularly in light of Uganda’s new importation strategy,” stated KPC Managing Director Joe Sang.

Minister Ssentamu noted that last week’s visit focused on planning and preparing for the project’s commencement, as well as gaining insight into Kenya Pipeline’s operations, infrastructure, and human capacity.

This project is expected to significantly impact the region’s fuel import market. Uganda recently transitioned to independent fuel imports, ending its previous reliance on Kenya for refined petroleum products. Under a new agreement with the Uganda National Oil Corporation (UNOC) and Dutch energy multinational Vitol Bahrain, Uganda aims to secure more competitive fuel prices. However, Uganda will continue to rely on Kenya’s port of Mombasa and KPC’s infrastructure to transport oil products to the Eldoret and Kisumu depots.

The pipeline extension follows a period of tension between Kenya and Uganda. Earlier this year, Kenya denied Uganda’s government-owned oil marketer a licence to operate locally, preventing the use of KPC infrastructure to move refined petroleum products from Mombasa to Uganda. This led to Uganda suing Kenya at the East African Court of Justice in December, accusing Kenya of denying UNOC the right to operate as an oil marketing company.

In February, Kenyan President William Ruto and Ugandan President Yoweri Museveni began resolving the dispute. By May, after further discussions, they tasked their respective ministers to mobilize resources for the project and report on progress by the end of 2024.