Uganda's first direct fuel import reaches Mombasa after deal with Kenya ended

The first consignment of directly imported Ugandan fuel was received at the new Kipevu Oil Terminal at the Mombasa Port on Wednesday, July 3, marking a historic event.

Mombasa Port officials stated that the milestone has highlighted the operational efficiency and strategic importance of the Port of Mombasa in East Africa’s petroleum logistics.

During the reception ceremony, Uganda’s Minister for Energy and Mineral Development, Dr. Ruth Nankabirwa, expressed her satisfaction with the quality of the refined petroleum products delivered through Mombasa.

She noted that this event is a remarkable achievement for the Uganda National Oil Company (UNOC) and extended gratitude to the Kenya Ports Authority (KPA), Kenya Pipeline Company (KPC), Energy and Petroleum Regulatory Authority (EPRA), and the Kenyan government for their collaborative efforts in facilitating the imports.

“This event is a milestone for the Uganda National Oil Company, and we extend our gratitude to the KPA, KPC, EPRA, and the entire Government of Kenya for ensuring the commencement of the imports,” Dr. Nankabirwa stated.

KPA Managing Director Captain William Ruto highlighted the operational enhancements brought about by the new Kipevu Oil Terminal.

He pointed out that the facility has significantly improved the efficiency of marine oil terminal operations, creating synergy and enhancing safety and operational excellence. Captain Ruto also reported that the Kipevu Oil Terminal handled a total of 9,636,098 metric tonnes of petroleum products in the fiscal year 2023-2024, symbolising the port’s growing capacity to attract more oil tankers.

Ugandan oil consignment docks at the Kipevu Oil Terminal at the Port of Mombasa on July 3, 2024. (Photo: Kenya Ports Authority)

“The operationalisation of the new Kipevu Oil Terminal has streamlined marine oil terminal operations, created synergy, enhanced safety, and achieved operational excellence,” Captain Ruto remarked.

According to Captain Ruto, handling 9,636,098 metric tonnes of petroleum products in the past year is a testament to the port’s efficiency and attractiveness to oil tankers.

Kenya’s Principal Secretary of the State Department of Petroleum, Dr. Mohamed Liban, representing Energy and Petroleum Cabinet Secretary Davis Chirchir, reiterated the Kenyan government’s commitment to ensuring the security and safety of petroleum cargo.

Dr. Liban emphasised that the government's ongoing efforts are geared towards maintaining high standards of safety and security for all imports and exports passing through the port.

UNOC Chairman Mr. Mathias Katamba and UNOC CEO Ms. Proscovia Nabbanja also expressed their optimism regarding the new development. They highlighted that the direct importation of fuel through the Kipevu Oil Terminal is a significant step forward in enhancing Uganda's fuel supply chain and economic growth.

Last year, Uganda ended its deal with Kenya, which imported oil on behalf of its neighbouring country. President Yoweri Museveni, in November 2023, accused Kenyan oil marketers and middlemen of charging exorbitant fees.

Uganda National Oil Company's (UNOC) attempts to secure a licence as an independent oil marketing company to import fuel via Mombasa Port also faced significant hurdles after Kenya's Energy and Petroleum Regulatory Authority (EPRA) declined to approve the application.

In response, Uganda sued Kenya at the East African Court of Justice and requested to be allowed to operate locally and handle fuel imports headed to Kampala through Mombasa.

Leaders including Roads CS Kipchumba Murkomen (L) and opposition chief Raila Odinga (R) bid farewell to Ugandan President Yoweri Museveni (C) following his state visit to Kenya, during which he and President William Ruto signed trade and transport infrastructure agreement, on May 17, 2024. (Photo: X/Kipchumba Murkomen)