The fight between Uganda and Kenya has continued through the East African Court of Justice as Kampala pushes to secure a license for its government oil company to handle fuel imports on Kenya territory.
Uganda’s fuel imports largely arrive via Kenya’s ports and have historically been handled by Kenyan firms which later ship them to Kampala.
Uganda wants this to stop and instead get a license for a Ugandan firm UNOC (Uganda National Oil Corporation ) to handle fuel imports destined to Uganda.
But Nairobi has issued a complex set of requirements that make it very difficult for Uganda to get a license.
The case was filed in the regional court by the Uganda government on December 28 highlighting the falling diplomatic and trade ties between the two neighbours.
Uganda argues that Kenya faulted on an agreement between the two countries made in April last year to support Kampala’s quest to directly import its fuel effective January this year.
Kenya responds to Uganda’s argument saying that Nairobi through its Energy ministry and petroleum regulatory authority issued a list of requiements that UNOC needed to comply with in order to secure a licence.
“UNOC found that list of requirements as an unnecessary hinderance to implementation of its petroleum policy as the petroleum products in issue were wholly transit goods not destined for the Republic of Kenya,” according to Uganda’s Attorney-General as mentioned in court documents.
From January Uganda wants to start directly buying fuel from Vitol Bahrain, following a fall-out triggered by Kenya’s decision to enter into a government-backed deal with three gulf oil majors.
Considering Plan B, Uganda is in talks with neighbouring Tanzania which also links to the Indian Ocean and use Port of Dar es Salaam to handle fuel imports.
However, Kenya has a superior network compared to the facilities in Tanzania therefore it is in Uganda’s Interest to press Kenya to grant UNOC an operating license.
This is the first time Uganda and Kenya have taken their fight in the regional court.
