Uganda and Kenya are set to construct an Eldoret-Kampala-Kigali refined petroleum product pipeline, Eagle Online has learnt.
The revelation was made by the President of Kenya, William Ruto, following his meeting with President Yoweri Museveni and Kenya opposition leader Raila Odinga.
“We also discussed the need for the two countries to urgently pursue the design and construction of the earlier conceptualised Eldoret-Kampala-Kigali refined petroleum product pipeline. I am glad that the issues affecting the flow of petroleum products between Kenya and Uganda are being resolved,” Ruto said.
The development follows Uganda’s decision to monopolise Uganda National Oil Company (UNOC) as the sole importer of petroleum products, marking a significant shift in the nation’s energy landscape.
This governmental intervention was prompted by Kenya’s policy shift from the Open Tender System (OTS) to government-to-government (G2G), a process deemed overly prolonged with numerous stakeholders whose profit margins could impact pump prices. Almost 90% of Uganda’s petroleum imports currently traverse Kenya, accounting for approximately 2.5 billion litres valued at about $2 billion annually.
Moving forward, UNOC will import directly from an international oil company and supply to Ugandan OMCs, eliminating several intermediaries. A branch has been established in Kenya to facilitate collaboration with stakeholders such as the Kenya Pipeline Company (KPC), responsible for transporting petroleum products from Mombasa to in-land towns like Nairobi and Eldoret, where trucks pick up the supplies.
According to Ruto, they also discussed the declared candidature of Kenya’s former Prime Minister, Raila Odinga, for the Africa Union Commission chairmanship.
He said that they agreed on a way forward for sourcing and scheduling imports for the region in a manner that will ensure we achieve the most competitive pricing and maximum logistical efficiency.
” Kenya and Uganda are committed to the deepening of the long-established diplomatic and economic ties between our two countries. This relationship includes bringing all seven East African Community nations closer to their ultimate goal of forming the East African Political Federation,” he said.
