Kenya has agreed to issue a license to neighbouring Uganda which will allow them import fuel through the port of Mombasa without any restrictions.

Addressing the National Assembly on Wednesday, March 27, Energy Cabinet Secretary (CS) Davis Chirchir stated that the due process to issue a permit to Uganda National Oil Corporation (UNOC) was underway.

This will see Uganda resume import of fuel from Arab nations through Kenya Pipeline Corporation (KPC).

CS Chirchir was quick to note that the decision was not arrived at from undue pressure after being sued by the President Yoweri Museveni-led country.

“You will see UNOC getting a license and then we will see how to work together because usage of our pipeline is an opportunity for us,” he added.

In January this year, Uganda sued Kenya at the East African Court of Justice in Arusha, Tanzania over a dispute involving taxation of petroleum products on transit to Uganda through the port of Mombasa. 

This was after the Energy and Petroleum Regulatory Authority (EPRA) requested the Uganda National Oil Company (UNOC) to obtain a license in order to transport its petroleum products through Kenya.

““UNOC was required by the Respondent to meet certain regulatory requirements including obtaining an Import, Export and Wholesale of Petroleum Products (except LPG) License (hereinafter referred to as “the License”) from the Energy and Petroleum Regulatory Authority (EPRA) to utilize the petroleum transit infrastructure in Kenya especially the Kenya Pipeline systems in furtherance of the new Ugandan policy,” read part of the court papers.

Currently, Uganda imports approximately 90% of her refined Petroleum products through the Port of Mombasa in Kenya.

The Attorney General of Uganda had indicated in the court papers that EPRA’s license was an unnecessary hindrance to the implementation of Uganda’s petroleum policy as the petroleum products in issue were wholly transit goods not destined for Kenya.