The Uganda National Oil Company (UNOC) to start doing direct importation of Oil straight from Kenya in May 2024 and this was after Kenya said okay to license it, marking the end of a feud between the two East African Community member states.
We should also remember that Uganda was blocked from getting a license to import oil through Kenya by a court petition made at the High Court in Machakos, as the petitioners cited noncompliance by UNOC.
The Energy and Petroleum Regulatory Authority (EPRA) announced on Wednesday that it would finally issue a permit to UNOC after the case was withdrawn. Energy Cabinet Secretary Davis Chirchir stated on Wednesday, March 27, 2024, that efforts are underway to issue a permit allowing UNOC to directly import fuel through the Kenya Pipeline Company (KPC).
“You will see UNOC obtaining a license, and then we will explore how to collaborate because utilizing our pipeline presents an opportunity for us. They will utilize Kenya Pipeline Company’s infrastructure, ensuring no loss of opportunity; KPC will remain the transporter. We are closely coordinating with Uganda to address this challenge,” he said.
UNOC expressed satisfaction with the development. Sarah Banage, the company’s head of corporate affairs, stated that this development would significantly contribute to their efforts to enhance Uganda’s energy security.
“This development significantly contributes to our efforts to enhance Uganda’s energy security. Efforts are underway to issue UNOC the necessary permit enabling us to import fuel directly through Kenya,” she said.
The license from the Energy and Petroleum Regulatory Authority will grant UNOC access to the storage and transport network of KPC from the port of Mombasa to Kisumu, thus streamlining fuel transportation. This is anticipated to result in a reduction in fuel costs.
