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Home » News » Uganda fuel deal was not making business sense, says Kenya

Uganda fuel deal was not making business sense, says Kenya

Last updated: January 12, 2024 9:24 am
2 years ago
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Government Spokesperson Isaac Mwaura has voiced support for Kenya’s decision to restrict Uganda from utilizing the Kenya Pipeline Company (KPC) infrastructure for transporting refined petroleum products from Mombasa to Uganda.

In an interview with one of the local stations, Mwaura defended the move, underscoring that it was a decision made in consideration of the well-being of ordinary Kenyans.

He pointed out the financial burden on Kenya in maintaining the pipeline system and transporting fuel to Uganda, highlighting the insufficient benefits derived from the project.

“The pipeline is not used efficiently, the deal is expensive, but we are not reaping the expected profits.”

Regarding the ongoing legal case where Uganda is suing Kenya, Mwaura emphasized that the government would await the court ruling before taking any further action.

However, he emphasized Kenya’s commitment to engage with Uganda, prioritizing projects that economically benefit the public, and stressed the adoption of the new Government-to-Government (G2G) model.

Uganda had taken the matter to the East African Court of Justice (EACJ), accusing Kenya of denying its entity, the Uganda National Oil Company (UNOC), the right to operate as an Oil Marketing Company (OMC) in Kenya.

Uganda also contested the licensing protocols imposed by EPRA on UNOC, seeking to declare them irrelevant, irrational, and illegal.

Uganda also accused Kenya of violating the EAC treaty by restraining EPRA from issuing the OMC license to Uganda.

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