The Uganda National Oil Company (UNOC) is set to commence direct oil imports through Kenya in May 2024, following Kenya’s approval of the necessary licensing, thereby resolving a longstanding dispute between the two East African Community member states.
Previously, Uganda faced obstacles in obtaining a license to import oil through Kenya due to a legal challenge filed at the High Court in Machakos, citing alleged noncompliance by UNOC.
In a recent announcement, the Energy and Petroleum Regulatory Authority (EPRA) stated its intention to issue a permit to UNOC after the withdrawal of the court petition.
Energy Cabinet Secretary Davis Chirchir confirmed the progress, stating that efforts are underway to grant UNOC the necessary permit to import fuel directly through the Kenya Pipeline Company (KPC).
Chirchir emphasized that collaboration between the two countries is vital, highlighting the utilization of Kenya Pipeline Company’s infrastructure for fuel transportation, ensuring no loss of opportunity. He assured that KPC will remain the transporter in this arrangement.
UNOC welcomed the development, with Sarah Banage, the company’s head of corporate affairs, expressing optimism about enhancing Uganda’s energy security through direct oil imports via Kenya.
The issuance of the license by the Energy and Petroleum Regulatory Authority will enable UNOC to leverage the storage and transport network of KPC, facilitating smoother fuel transportation from the port of Mombasa to Kisumu. This is expected to result in a reduction in fuel costs.
