By Domnic Maraga
Kenya and Uganda have initiated discussions on extending the petroleum products pipeline from Eldoret to Kampala, as announced by the Kenya Pipeline Company (KPC). Uganda’s Energy Minister, Ruth Ssentamu, met with key officials from Kenya’s Energy Ministry, including Principal Secretary Mohammed Liban, and toured KPC headquarters in Nairobi.
The Kenya Pipeline Company (KPC) announced the discussions on Tuesday, highlighting the visit of Uganda’s Energy Minister, Ruth Ssentamu, to Kenya. Ssentamu met with top officials from Kenya’s Energy Ministry, including Principal Secretary Mohammed Liban, and later toured KPC headquarters in Nairobi.
Pipeline Extension Plans
The pipeline extension project envisions the construction of a multi-product pipeline from Eldoret to the Kenya-Uganda border town of Malaba, spanning approximately 127 kilometers. Uganda will complement this with a connecting line from Malaba to its capital, Kampala, which covers about 236 kilometers. Looking ahead, there are aspirations to extend the pipeline further to Kigali, the capital of Rwanda.
Strategic Importance
Joe Sang, KPC Managing Director, emphasized the strategic significance of this extension for Kenya. “Extension of the pipeline to Uganda is a strategic move for Kenya as the country seeks to regain its competitive advantage in the petroleum export market, particularly in light of Uganda’s new importation strategy,” Sang stated.
Ruth Ssentamu remarked that the visit to Kenya was instrumental in planning and preparing for the project’s commencement. It also provided an opportunity to gain a deeper understanding of KPC’s operations, infrastructure, and human capacity.
Regional Impact
This ambitious project is set to impact the region’s fuel import market substantially. Uganda recently transitioned to independent fuel imports, moving away from its previous reliance on Kenya for refined petroleum products. Under a new agreement with Dutch energy multinational Vitol Bahrain, Uganda aims to secure more competitive fuel prices. Nonetheless, Uganda will continue to depend on Kenya’s port of Mombasa and KPC’s infrastructure to transport oil products to the Eldoret and Kisumu depots.
Resolving Past Tensions
Earlier this year, tensions flared between Kenya and Uganda when Nairobi denied Uganda’s government-owned oil marketer a license to operate locally, preventing the use of KPC infrastructure for transporting refined petroleum products. This dispute led Uganda to file a lawsuit against Kenya at the East African Court of Justice in December last year.
In February, Kenyan President William Ruto and Ugandan President Yoweri Museveni met to address the conflict, with Ruto announcing that the row was being resolved. Further discussions in May, where Museveni was hosted at State House in Nairobi, culminated in both leaders tasking their respective ministers to urgently mobilize resources for the pipeline project and report progress by the end of 2024.
Future Prospects
The extension of the pipeline signifies a pivotal step in enhancing regional cooperation and economic integration within East Africa. As Kenya and Uganda move forward with this project, the potential expansion to Rwanda could further unify the region’s energy infrastructure, fostering economic growth and stability.
The commitment to this pipeline extension underscores the strategic importance of collaborative infrastructure projects in boosting regional trade and economic resilience. With progress reports expected by the end of 2024, the region eagerly anticipates the tangible benefits of this ambitious initiative.
ENDS.
