Commodities

Kenya and Uganda Begin Talks on Extending Petroleum Pipeline to Kampala

Both countries have agreed to appoint a joint committee to oversee quality control and resource mobilization, with progress reports expected by the end of 2024.

Kenya and Uganda have officially initiated discussions to extend the petroleum products pipeline from Eldoret to Kampala.

Last week, Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu, met with officials from Kenya’s Ministry of Energy, led by State Department for Petroleum PS Mohammed Liban.

The delegation also toured the Kenya Pipeline Company (KPC) headquarters.

KPC Managing Director Joe Sang highlighted the strategic importance of extending the pipeline to Uganda for Kenya, aiming to regain its competitive edge in the petroleum export market amid Uganda’s new importation strategy.

“KPC is open and willing to collaborate with the Ugandan government to lay the Eldoret – Malaba pipeline,” he said.

The project involves constructing a multi-product oil pipeline from Eldoret to Malaba (Kenya-Uganda border).

Uganda will be responsible for building the connecting line to Kampala, with potential future expansions to Kigali, Rwanda.

Also Read: Uganda Begins Direct Importation of Fuel Via Port of Mombasa

During her Nairobi visit, Mrs. Ssentamu said the trip was focused on planning and preparing for the project kickoff, as well as understanding Kenya Pipeline’s operations, infrastructure, and human capacity.

This initiative follows Uganda’s recent shift to independent fuel imports, which began in early July, ending its reliance on Kenya for refined petroleum products.

Under a new agreement between the Uganda National Oil Corporation (UNOC) and Vitol Bahrain, Uganda aims to secure more competitive fuel prices while still using Kenya’s Port of Mombasa and KPC’s infrastructure to transport these products to Western Kenya depots in Eldoret and Kisumu.

The pipeline concept was initially proposed in 1995 through a Memorandum of Understanding between Uganda and Kenya. It was revisited in May 2024 after a feasibility study funded by the European Investment Bank confirmed the project’s viability.

“We have obliged our respective Ministers to take joint urgent measures to mobilize resources for the implementation of this regional shared infrastructure and report on progress by the end of 2024,” said President William Ruto in May this year when he hosted his Ugandan counterpart – Yoweri Museveni in Nairobi.

To ensure the project’s success, both countries have agreed to appoint a joint committee to oversee quality control and resource mobilization, with progress reports expected by the end of 2024.

Monitor Your Business Transaction

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button