Vitol Bahrain signed a deal with Uganda National Oil Corporation (UNOC) to directly import oil and ensure affordable supply. Uganda’s government approached Kenya to allow UNOC to import fuel through the Mombasa port.
The Energy and Petroleum Regulatory Authority (EPRA) granted UNOC operational licenses, paving the way for Uganda’s first fuel vessel arrival in June 2024. Minister Ruth Nankabirwa of Uganda’s Energy and Mineral Resources Department stated that the first shipment of petrol and diesel under the UNOC-Vitol Bahrain deal is expected between June 18 and 26.
“I am aware that the government of Kenya has shared the agreed vessel import schedules indicating the delivery date ranges for the first UNOC cargo for petrol and diesel between June 18-26 June for AGO (diesel) and June 22-24, 2024 for PMS (super petrol) alongside government-to-government vessels including a portion of products destined for Uganda,” said Nankabirwa, as quoted by the East African.
Nankabirwa noted that the move will give Ugandans a cheap supply of fuel, stabilising pump prices.
Why Uganda denied Kenya’s G2G oil deal
Uganda expressed concerns about the rising prices of petroleum products imported through Kenya due to issues with Kenya’s government-to-government oil import agreement. The country currently relies on Kenya for about 90% of its oil imports, with the remaining 10% sourced from Tanzania.
Minister Nankabirwa stated that the ratio would stay unchanged in the new import agreement with Vitol Bahrain, as Uganda plans to utilize the facilities of the Kenya Pipeline Company.
What to know about the Kenya-Uganda oil deal
In January 2024, Kenya made a sincere request to Uganda to continue importing fuel through the Mombasa Port, rather than using the alternative route via Dar es Salaam. President William Ruto and his Ugandan counterpart, Yoweri Museveni, held a meeting in April 2024 and reached an agreement on an oil import deal.
In March 2024, Energy Cabinet Secretary (CS) Davis Chirchir told the senate committee that the deal provides a huge opportunity for Kenya and “there will be no loss.”
