Nairobi, Kenya, May 16, 2024 – In a significant diplomatic development, Uganda and Kenya have signed a tripartite agreement enabling the Uganda National Oil Company (UNOC) to directly import refined petroleum products through Kenya. This agreement, signed during President Yoweri Museveni’s visit to Nairobi on May 16, marks the end of a months-long dispute and promises to enhance the efficiency and reliability of Uganda’s petroleum sector.
The agreement comes after a period of tension between the two nations, sparked by Kenya’s denial of a license to Uganda’s government-owned oil marketer, UNOC, to operate locally and handle fuel imports to Kampala. Kenya had also restricted the use of the Kenya Pipeline Company (KPC) infrastructure for transporting Uganda’s refined petroleum products from Mombasa port, leading Uganda to file a lawsuit at the East African Court of Justice on December 28.
In response, Kenya argued that UNOC needed to register as an oil marketer with Kenya’s Energy and Petroleum Regulatory Authority (EPRA) to conduct petroleum transactions through Kenya. With this new agreement, these bureaucratic hurdles have been addressed, facilitating smoother trade relations and ensuring a more stable supply of petroleum products to Uganda.
Historic Visit and Strengthened Ties
President Museveni was officially welcomed to State House, Nairobi, by President William Ruto. The visit underscored the deepening bilateral relations between Uganda and Kenya. The two leaders held a private meeting followed by bilateral talks with officials from both governments, focusing on key sectors such as transport, infrastructure, trade, investment, immigration, regional integration, peace, and security.
A major highlight was the signing of the tripartite agreement on petroleum imports, which allows UNOC to directly source refined products from various jurisdictions. “This breakthrough is expected to address the challenges faced by the petroleum sector in Uganda, leading to enhanced efficiency and reliability,” President Museveni stated during the press briefing.
Mutual Benefits and Regional Integration
During the press briefing, President Museveni expressed gratitude to President Ruto for facilitating discussions on mutual interests. He emphasized the importance of bilateral cooperation in fostering regional development and stability, highlighting the need for continued collaboration to tackle common challenges and capitalize on growth opportunities.
President Museveni reflected on the broader context of the agreements, connecting them to historical missions of regional integration and economic development. He noted the significance of aligning current efforts with the original goals of independence and unity in Africa. “Integration is now being pursued with the aim of fighting the battle of prosperity through wealth creation and market access,” Museveni explained.
President Ruto echoed these sentiments, expressing optimism about the potential of the signed agreements to solidify the strong relations between Kenya and Uganda. “These instruments will transform our cooperation and maximize the benefits for our countries and citizens,” Ruto remarked.
Conclusion
President Museveni’s visit to Kenya and the subsequent signing of the tripartite agreement mark a pivotal moment in Uganda-Kenya relations. The agreements underscore both nations’ commitment to regional integration, economic development, and political stability. As East Africa continues to pursue these goals, the collaboration between Uganda and Kenya serves as a model for addressing shared challenges and fostering prosperity.
