President William Ruto now says that Kenya and Uganda have resolved a recent row over the transportation of petroleum products through the Kenyan port.
In a statement after meeting Ugandan President Yoweri Museveni, Ruto said that they have agreed on a way forward and the issues will be settled in no time.
He said that the agreement would see the two countries have oil product imports at competitive prices and ensure maximum efficiency in their movements.
"I am glad that the issues affecting the flow of petroleum products between Kenya and Uganda are being resolved. We have agreed on a way forward of sourcing and scheduling imports for the region in a manner that will ensure we achieve the most competitive pricing and maximum logistical efficiency," Ruto said.
He added that they also discussed the construction of the Eldoret-Kampala-Kigali petroleum pipeline that had stalled.
"In my meeting with President Kaguta Museveni today, we also discussed the need for the two countries to urgently pursue the design and construction of the earlier conceptualized Eldoret-Kampala-Kigali refined petroleum product pipeline."
This comes a few months after Uganda sued Kenya at the East African Court of Justice (EACJ) over its refusal to allow its use of the Kenya Pipeline Company (KPC) infrastructure to move refined petroleum products from Mombasa port to Uganda.
Uganda accused Kenya of denying the Uganda National Oil Company (UNOC), the right to operate as an Oil Marketing Company (0MC) in Kenya.
In an application filed at the East African Court of Justice, Uganda through its Attorney General claimed the Kenyan government had restrained EPRA from issuing them with a licence for the importation of oil from Mombasa to Uganda.
In court documents filed on December 28, 2023, Uganda said they import approximately 90 per cent of its refined Petroleum products through the Port of Mombasa in Kenya and the products are transported to Uganda using the pipeline owned and operated by the Kenyan Pipeline Company Limited (KPC).
The landlocked country said the importation and supply of refined petroleum products into Uganda had traditionally been handled by the Oil Marketing Companies (OMC) operating in Kenya through the Kenya Open Tender System (OTS) and subsequently through the Government-to-Government arrangements between Kenya and foreign Governments, that Kenya adopted in early 2023.
Under the arrangement, OMCs operating in Kenya import petroleum products and in turn, sell the same products to Uganda's OMCS.
"The complete reliance and dependency on Kenyan OMCs to import and supply petroleum products to Uganda have exposed the Republic of Uganda to supply vulnerabilities resulting in an avoidable increase in fuel pump prices," Uganda stated in court documents.
Further, the Government of Uganda made a policy shift in the manner in which the sourcing, importation and supply of petroleum products for the Ugandan market is to be handled.