Uganda has questioned the role of Kenyan intermediaries in its fuel imports as Kampala moves to direct purchases from international suppliers, seeking to reduce procurement costs.
President Yoweri Museveni said Uganda had previously imported petroleum products through intermediaries in Kenya, prompting his government to investigate the arrangement, according to Businessfront.
Uganda later centralised bulk fuel procurement through Uganda National Oil Company (UNOC), which signed an agreement with global energy trader Vitol in 2023.
Museveni also said that the shift had reduced fuel premiums. Diesel premiums fell to $83 per metric tonne from $118, while petrol premiums dropped to $61.50 from $97.50, he noted.
Despite the change in procurement, Uganda remains heavily dependent on Kenya for transportation. About 95% of its petroleum imports pass through the Port of Mombasa and Kenya’s pipeline network.
The dispute highlights the close links between the two countries’ energy sectors, with Uganda seeking greater control over fuel purchasing while continuing to rely on Kenya as a key transit route.
