Ugandan lawmakers have enacted legislation to curtail fuel imports from Kenya, aiming to counter the influence of cartels that have wielded control over the sector. The parliamentary approval of the bill grants exclusive importation authority to the Uganda National Oil Corporation (UNOC), bypassing intermediaries in Kenya.
Ugandan legislators emphasized that their citizens have endured significant hardships due to cartels operating in the Kenyan market. The rationale behind the move is that Ugandans are purchasing fuel at retail prices while having the option to directly import fuel from sources like Saudi Arabia through the Mombasa port.
Ugandan Members of Parliament have explicitly stated that if the Kenya Fuel Network Holding Company (Kfnhc) creates obstacles for them in importing fuel from the Ports of Mombasa, they are prepared to explore the alternative route through Tanzania. Uganda has emphasized the substantial challenges it has faced by depending on cartels and brokers in Kenya for its fuel supply.
Kenya plays a crucial role as the primary fuel importer in East Africa, while also serving as an exporter of fuel products to Rwanda, Uganda, the Democratic Republic of Congo, Sudan, and South Sudan. It's essential to recognize that if Uganda ceases imports from Kenya, it will have adverse effects on both countries.
