President William Ruto disclosed on Monday that Kenya and Uganda have reached an agreement regarding equitable distribution and pricing of fuel following months of trade disputes.
The announcement came after a meeting between Ruto and Uganda’s President Yoweri Museveni, where Ruto highlighted that the new arrangement aims to ensure neighboring countries benefit from a fair allocation of fuel resources.
Addressing concerns over the trade impasse, Ruto mentioned that both governments are actively engaged in resolving the issues that led to Uganda’s legal action against Kenya at the regional court over alleged trade imbalances.fgvjk
Additionally, he affirmed Kenya’s commitment to spearheading the resumption of the joint pipeline construction project connecting the two nations.
These developments unfold against the backdrop of Uganda’s plans to sever ties with Kenya and pursue a direct pipeline connection with Tanzania. Uganda had previously accused Kenyan companies of inflating fuel prices, compromising fairness for Ugandan consumers.
“We have agreed on a collaborative approach to sourcing and scheduling fuel imports for the region, aimed at achieving competitive pricing and optimal logistical efficiency,”Ruto stated.
He further emphasized discussions with President Museveni on the urgent need to progress with the design and construction of the Eldoret-Kampala-Kigali refined petroleum product pipeline.
Recent disagreements between Kenya and Uganda have centered on alleged trade disparities. Uganda’s legal challenge accused Kenya of maintaining an unfair trade framework, particularly citing the Energy Petroleum and Regulatory Authority’s refusal to grant Uganda National Oil Company a license for direct fuel imports from Kenya.
Uganda’s enactment of the Petroleum Supply Amendment Bill 2023 further underscores its efforts to assert control over fuel imports by empowering the national corporation as the exclusive importer and distributor.
This legislative move aims to sever reliance on Kenyan companies accused of prioritizing profit margins over fair pricing for Ugandan consumers.
