APA – Kigali (Rwanda) In a significant move that underlines the intricacies of regional cooperation and national interests, Kenya has declined Uganda’s application to use its oil pipeline for fuel transport, several correspondents in the region reported Friday
The move has been motivated by concerns over the displacement of local oil marketing companies. Uganda National Oil Company (UNOC) had applied to be registered as an oil marketing company in Kenya, a status that would have given it access to the Kenya Pipeline Company’s facilities.
However, the Energy and Petroleum Regulatory Authority turned down the application, stating that UNOC could not meet certain requirements.
Reports indicate that this decision has far-reaching implications for both nations.
It said that Uganda currently sources approximately 90% of its fuel from Kenya, a dependence that will see a drastic change from 2024.
APA recalls that Uganda has signed a contract with Vitol Bahrain E.C., and hence will cease buying fuel from Kenyan firms from that year onwards. The refusal to register UNOC as an oil marketing company in Kenya unravels the complexities of cross-border business operations and regulatory obligations.
Meanwhile, the diplomatic scene is being shaped by evolving dynamics of colonial legacies and attempts at addressing historical injustices. Recent visits by Germany’s President Frank-Walter Steinmeier to Tanzania and Britain’s King Charles III to Kenya have brought these issues to the fore.
Steinmeier asked for ‘forgiveness’ for Germany’s colonial atrocities in Tanzania, offering to repatriate remains of anti-colonial war heroes. King Charles III expressed ‘regrets’ for injustices committed by British colonial governors in Kenya, particularly during the Mau Mau war.
While historical reconciliation is a key aspect, economic interests are also at play, according to analysts.
CU/abj/APA