Kenya has finally expressed willingness to issue oil importation licence to the Ugandan National Oil Company (UNOC) to enable the East African nation to import fuel directly through Kenya Pipeline Company (KPC).
The move is likely to end the feud between the two East African nations which has lasted for some months.
Uganda went to the regional court in December last year to fight for the licence that would allow the use of KPC’s infrastructure for oil import.
Uganda’s decision to use UNOC to import fuel directly followed an investigation that showed that Kenyan oil marketers who were selling oil to Uganda were charging exorbitant prices and making huge profits.
The issue infuriated President Yoweri Museveni and he directed that UNOC should import petroleum products directly using KPC.
Kenya refused to issue licence to Uganda, compelling it to file a case at the East African regional court.
Although the case is yet to be determined, Kenya has given indication of its willingness to issue licence to Uganda.
Kenya’s Energy Cabinet Secretary Davis Chirchir on Wednesday said work was in progress to issue a permit that would allow UNOC to import fuel directly through KPC.
“You will see UNOC getting a licence and then we will see how to work together because usage of our pipeline is an opportunity for us,” Mr Chirchir said.
“They will employ Kenya Pipeline Company’s infrastructure so there will be no loss of opportunity, the transporter will remain to be KPC. We are working closely with Uganda to resolve the challenge,” he added.
Chirchir’s revelations came days after a case filed at the High Court in Machakos to block the licensing of UNOC was withdrawn.
Sources said the licence is likely to be issued next month. The licensing could end the dispute and allow UNOC to buy fuel from Vitol Bahrain.
Source: https://energynewsafrica.com