Kenya, Uganda Resolve Oil Import Clash with Licensing Resolution
The Kenyan government has announced its intention to grant a license to the Uganda National Oil Company (UNOC), marking a significant step towards resolving a prolonged dispute. Energy Cabinet Secretary Davis Chirchir revealed on Wednesday that efforts were underway to issue a permit allowing UNOC to import fuel directly through the Kenya Pipeline Company (KPC).
This assurance comes shortly after petitioners, who had previously filed a case seeking to block the Energy and Petroleum Regulatory Authority (EPRA) from granting the permit, withdrew their legal challenge. Chirchir emphasized the importance of collaboration, stating, “We will see how to work together because the usage of our pipeline is an opportunity for us.”
He further clarified that UNOC would utilize KPC’s infrastructure for transportation, ensuring no loss of opportunity, and confirming that KPC would remain the transporter. Kenya is actively engaging with Uganda to address the challenges and move towards a resolution.
The feud had escalated to the courts when Uganda appealed to the regional court in December last year to secure the license enabling the use of KPC’s infrastructure. UNOC had initially aimed to commence direct imports in January but faced indefinite delays after failing to obtain a license from EPRA. The Kenyan energy regulator cited non-compliance with legal requirements as the reason for refusal.
The case filed by Royani Energy Limited, Acacia Ridge Construction, and two individuals at the Machakos High Court was withdrawn on March 22, clearing the path for progress in the matter.
Uganda initiated plans for direct imports through UNOC following Kenya’s announcement of an agreement with major Gulf companies, including Saudi Aramco, Abu Dhabi National Oil Corporation, and Emirates National Oil Company, to import fuel with a 180-day credit period.
