Kenya is being sued by the Ugandan government over the petroleum oil import agreement involving Mombasa port.
Uganda, via its Attorney General, alleges in a complaint to the East African Court of Justice that the Kenyan government has prevented EPRA from granting them a license to import oil into Uganda from Mombasa.
Uganda asserts in court filings dated December 28, 2023, that it imports over 90% of its refined petroleum products via the Port of Mombasa in Kenya, with the products being delivered to Uganda via a pipeline run by the Kenyan Pipeline Company Limited (KPC).
The landlocked nation claims that historically, the Oil Marketing Companies (OMC) operating in Kenya through the Kenya Open Tender System (OTS) and later through the Government-to-Government agreements between Kenya and foreign governments, which Kenya adopted in early 2023, have been in charge of handling the importation and supply of refined petroleum products into Uganda.
As per the agreement, OMCs functioning in Kenya procure petroleum products, which they then supply to Uganda’s Oil and Gas Company (OMCS).
In addition, the Ugandan government changed its policies regarding the procurement, importation, and distribution of petroleum products for the domestic market.
As a result, Uganda granted the applicant, through Uganda National Oil Company (UNOC), the exclusive right to import and supply all petroleum products for the Ugandan market.
As a result, Uganda began discussions with Kenyan authorities on the new policy for the procurement, importation, and supply of petroleum products intended for the Ugandan market at some point in April 2023.
Kenyan officials gave the Ugandan authorities their word that Kenya would back them unconditionally in carrying out the aforementioned policy, in accordance with the principles and conditions of the treaty and the protocols adopted thereunder.
