Uganda received its first consignment of directly imported oil on Wednesday, July 3, ending its dependency on Kenya for its fuel.

The oil imported through the Port of Mombasa happened eight months after Ugandan President Yoweri Museveni accused Kenya of inflating fuel prices in his country. 

In November 2023, Museveni remarked that Uganda would start importing fuel directly as Kenyan oil marketers and middlemen charged exorbitant fees.

Uganda Minister for Energy and Mineral Development Ruth Nankabirwa received the first Ugandan oil consignment at the Port of Mombasa.

Speaking of the milestone, she revealed that Museveni’s administration was satisfied with the quality of refined petroleum products delivered.

Uganda will now be importing oil through Uganda National Oil Company (UNOC) and transporting it using the Kenya Pipeline Company (KPC) infrastructure.

Principal Secretary of the State Department of Petroleum  Mohamed Liban assured the Ugandan government of Kenya’s commitment to ensuring the security and safety of the cargo.

Museveni had in November 2023, remarked that it was unacceptable for his country to be at the mercy of Kenyan entrepreneurs.

“Without my knowledge, our wonderful people were buying this huge quantity of petroleum products from middlemen in Kenya,” Museveni stated while calling for an end to the oil deal.

The decision to import its own oil faced hurdles as the Energy and Petroleum Regulatory Authority (EPRA) refused to hand UNOC an importation licence.

In December 2023, the Ugandan government sued Kenya over the licence impasse and following diplomatic interventions, the case was withdrawn and UNOC handed the licence in March 2024.

Under the new agreement between Kenya and Uganda, UNOC will be importing fuel and transporting it through KPC infrastructure resulting in a win-win situation for both countries according to Energy Cabinet Secretary Davis Chirchir.

Kenya Ports Authority (KPA) Managing Director William Ruto noted that a newly commissioned Kipevu Oil Terminal had the capacity to handle the increased volumes.