- Epra declined UNOC’s application to use its fuel pipeline due to its inability to substantiate the annual sales volumes of 6.6m litres of either super petrol, diesel, or kerosene in Kenya.
- Kenya supplies about 90% of Uganda’s fuel, while Uganda sources the remaining 10% through Tanzania.
Kenya has rejected an application by Uganda to use Kenya’s pipeline to transport its fuel. Kenya turned down the application due to concerns that the move would displace local oil marketing companies (OMCs) from using the pipeline. Uganda will stop buying fuel from Kenyan firms from January 1, 2024. This comes after it entered into a five-year contract with Vitol Bahrain E.C, which will supply it with its entire fuel needs.
Kenya supplies about 90 per cent of Uganda’s fuel, while Uganda sources the remaining 10 per cent through Tanzania. The State-owned Uganda National Oil Company (UNOC) subsequently applied to Kenya’s Energy and Petroleum Regulatory Authority (Epra) in September to be registered as an OMC in Kenya. This would allow it to import and export fuel like other OMCs and utilise Kenya Pipeline Company’s (KPC) pipeline.
Epra, however, declined UNOC’s application because the Ugandan agency could not substantiate the requisite annual sales volumes of 6.6 million litres of either super petrol, automotive gasoil (diesel), or jet A1/kerosene in Kenya. Another reason was that UNOC could not provide evidence of operating five licensed retail stations in Kenya, operating a licensed depot in Kenya, or achieving a minimum annual turnover of $10 million (Sh1.51 billion) for the last three years, which is a requirement for applicants with operations outside Kenya.