Uganda Drags Kenya To East African Court Over Oil Importation Deal

• Uganda sued Kenya at the East African Court of Justice to seek redress in the disputed oil importation deal
• The neighbouring countries agreed on certain proposed policies regarding the importation of petroleum products via the UNOC and KPA
• Uganda reportedly failed to submit the requirements to EPRA, hence the alleged blockage by the Kenya Kwanza government

Nancy Odindo, a journalist at TUKO.co.ke, brings more than three years of experience covering politics, news, and feature stories across digital and print media in Kenya.

The government of Uganda has filed a lawsuit against Kenya in the East African Court of Justice regarding the disputed oil importation agreement.

Court documents submitted through Uganda's Attorney General claim that Kenya had blocked the Energy and Petroleum Regulatory Authority (EPRA) from granting it a licence to import oil through Mombasa Port.

"A declaration that the action of the Republic of Kenya restraining EPRA from issuing the licence to the applicant contravenes Articles 5(1), (3)(a), (b) and (h); 6(b) (d) and (f); 7(1) (a), (b); 8(1)(a) and (c); 23; 27, 28; 76(1); 89(b) and (e); 90(1); 93(c) and (d); and 130 of the Treaty for the Establishment of the East African Community and Articles 3(2), 4(2)(a), 5(1), 18 and 38 of the Protocol," Uganda claimed.

The landlocked country stated that the government-to-government oil deal signed with the Kenya Kwanza administration in early 2023 permitted them to import oil through the Kenya Pipeline Limited Company.

What caused delay in actualising importation deal?

The agreement involved Kenya supporting Uganda's policy of importing and supplying petroleum products through the Uganda National Oil Company (UNOC).

However, there has been a delay in actualising the proposed policies as the neighbouring country requested a waiver of the documents directed by EPRA, terming them unnecessary.

With continued woes, Yoweri Museveni's administration asked the court to cut off Kenyan Oil Marketing Companies (OMCs) from importing fuel on behalf of Uganda.

"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," court documents submitted by Uganda read.

Uganda ditches Kenyan port for Dar es Salam

In November last year, Uganda agreed with Tanzania to have their petroleum and gas imported through the Dar es Salam port, citing system efficiency.

The five-year deal was signed with an international firm, Vital Bahrain E.C., giving the company a permit to supply oil to the Uganda National Oil Corporation.

The country claimed that Kenya was responsible for the inflated pump prices. This was after Kenya abandoned the open tender system to import oil on credit.