Uganda engaged the Kenyan authorities on the new policy for the sourcing, importation and supply of petroleum products meant for the Ugandan market. 

The Kenyan authorities in line with the Principles and provisions of the Treaty and Protocols made thereunder, assured the Uganda of unwavering support in the implementation of the said policy.

Ugandan government has sued Kenya over the importation deal of petroleum oil from Mombasa port.

In an application filed at the East African Court of Justice, Uganda through its Attorney General claims the Kenyan government has restrained EPRA from issuing them with a licence for the importation of oil from Mombasa to Uganda.

In court documents filed on December 28, 2023, Uganda claims they import approximately 90 per cent of its refined Petroleum products through the Port of Mombasa in Kenya and the products are transported to Uganda using the pipeline owned and operated by the Kenyan Pipeline Company Limited (KPC).

The landlocked country says the importation and supply of refined petroleum products into Uganda has traditionally been handled by the Oil Marketing Companies (OMC) operating in Kenya through the Kenya Open Tender System (OTS) and subsequently through the Government-to-Government arrangements between Kenya and foreign Governments, that Kenya adopted in early 2023.

Under the arrangement, OMCs operating in Kenya import petroleum products and in turn, sell the same products to Uganda’s OMCS.

“The complete reliance and dependency on Kenyan OMCs to import and supply petroleum products to Uganda have exposed the Republic of Uganda to supply vulnerabilities resulting in an avoidable increase in fuel pump prices,” Uganda states in court documents.

Further, the Government of Uganda made a policy shift in the manner in which the sourcing, importation and supply of petroleum products for the Ugandan market is to be handled.

Accordingly, the Applicant through Uganda National Oil Company (UNOC) was empowered by Uganda to be the sole importer and supplier of all the petroleum products, for the Ugandan market.

Consequently, sometime in April 2023, Uganda engaged the Kenyan authorities on the new policy for the sourcing, importation and supply of petroleum products meant for the Ugandan market.