President William Ruto has announced the resolution of issues affecting the flow of petroleum products between Kenya and Uganda. Speaking after a meeting with President Yoweri Museveni of Uganda, President Ruto expressed satisfaction with the progress made in addressing the challenges and outlined a collaborative way forward.
“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,” stated President Ruto.
The discussions emphasized the need for a strategic approach to imports that would benefit both nations.
One notable outcome of the meeting was the mutual commitment to urgently pursue the design and construction of the Eldoret-Kampala-Kigali refined petroleum product pipeline. This marks a departure from previous reports suggesting that Uganda was in talks with Tanzania to import fuel through the Port of Tanga instead of the traditional Port of Mombasa, leading to heightened tensions with Nairobi.
Initially, faced with Kenya’s refusal to grant concessions for the use of its pipeline, Uganda considered the Port of Dar es Salaam.
However, concerns about the 1,715.6km road distance from Dar es Salaam to Kampala, compared to the 1,147.6km from Mombasa, raised alarms about increased costs. The Mombasa route, being shorter, enables Uganda to save up to $35 per cubic meter, making it a more economical and efficient choice.
Despite initial skepticism among Kenyan State officials and oil executives, recent revelations confirm ongoing talks between Uganda and Tanzania to utilize the Port of Tanga, which is significantly closer to Kampala.
While Tanga may not match the size of Dar es Salaam and Mombasa ports, recent capacity improvements position it as a viable and strategic option.
By xamse
February 27, 2024
