The Kenyan government has announced its intention to grant a license to the Uganda National Oil Company (Unoc), signaling the end of a prolonged dispute. Energy Cabinet Secretary Davis Chirchir stated that efforts were underway to issue a permit enabling Unoc to directly import fuel through the Kenya Pipeline Company (KPC). This assurance follows the withdrawal of a case by petitioners who sought to block the Energy and Petroleum Regulatory Authority (Epra) from issuing the permit.
Chirchir emphasized collaboration, stating, “We will see how to work together because usage of our pipeline is an opportunity for us.”Highlighting the cooperation between Kenya and Uganda, Chirchir emphasized that Unoc would utilize KPC’s infrastructure, ensuring no loss of opportunity, with KPC remaining the transporter. The feud, which escalated to court in December, saw Uganda petitioning the regional court for a license to utilize KPC’s infrastructure.
Unoc had aimed to commence direct imports in January but faced delays after failing to obtain a license from Epra. Kenya’s energy regulator cited non-compliance with the law as the reason for declining the license. On March 22, a case filed at the Machakos High Court by Royani Energy Limited, Acacia Ridge Construction, and two individuals was withdrawn, clearing the path for Unoc’s licensing.
Uganda’s move towards direct imports through Unoc followed Kenya’s agreement with Gulf majors to import fuel on a 180-day credit period, aimed at easing dollar demand and supporting the local currency, the shilling.
