Kenya Allows Uganda To Ship Its Imported Oil Via Mombasa Port, Ends Months Of Deal Stalemate

• Uganda National Oil Corporation (UNOC) signed a deal with Vitol Bahrain to import oil directly and guarantee a cheap supply
• The Ugandan government reached out to Kenya to allow UNOC to import fuel via the port of Mombasa
• The Energy and Petroleum Regulatory Authority (EPRA) licensed UNOC to carry out its operations, a move that will see Uganda get its first fuel vessel in June 2024

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Uganda will get its first vessel of petroleum products imported via the port of Mombasa in June 2024.

This followed the Kenyan government's decision to license the Uganda National Oil Corporation (UNOC) to import fuel directly.

When will Uganda start importing fuel?

Uganda Energy and Mineral Resources Minister Ruth Nankabirwa said the first petrol and diesel cargo UNOC imported under a deal with Vital Bahrain will arrive between June 18 and 26.

''I am aware that the government of Kenya has shared the agreed vessel import schedules indicating the delivery date ranges for the first Unoc cargo for petrol and diesel between June 18-26 June for AGO (diesel) and June 22-24, 2024 for PMS (super petrol) alongside government-to-government vessels including a portion of products destined for Uganda,” said Nankabirwa, as quoted by the East African.

Nankabirwa noted that the move will give Ugandans a cheap fuel supply and stabilise pump prices.

Why Uganda denied Kenya's G2G oil deal

The country raised concerns over increased prices of petroleum products imported via Kenya, citing issues with Kenya's government-to-government oil import deal.

About 90% of the oil used in the country comes from Kenya's imports, while the remaining 10% comes from Tanzania.

According to Nankabirwa, the ratio will remain the same in the new import deal with Vital Bahrain as the country intends to use the Kenya Pipeline Company facilities.

What else you need to know about Kenya-Uganda oil deal

• In January 2024, Kenya earnestly appealed to Uganda to persist in importing fuel through the Mombasa Port, bypassing the alternative route via Dar es Salaam.
• President William Ruto and his Ugandan counterpart, Yoweri Museveni, met in April 2024 and agreed on an oil import deal.
• In March 2024, Energy Cabinet Secretary (CS) Davis Chirchir told the senate committee that the deal provides a huge opportunity for Kenya and "there will be no loss."

Proofreading by Nyambura Guthua, journalist and copy editor at TUKO.co.ke