The governments of Kenya of Uganda have inked an oil deal as part of their shared commitment to improving infrastructure and trade efficiency, which is expected to have significant positive impacts on the economic landscape of both countries.
The significant agreement involves extending the oil pipeline from Eldoret, Kenya, to Uganda. This extension will enable Kampala to directly import refined petroleum products via Nairobi. The deal aims to enhance trade relations between the two nations and improve the efficiency of petroleum product importation for Uganda.
Tripartite deal
In addition to the pipeline extension, a tripartite agreement was signed, allowing the Uganda National Oil Company (Unoc) to import petroleum products through the port of Mombasa. This move is expected to address the longstanding challenges faced by Uganda in the petroleum sector.
Kenya’s President William Ruto emphasized that this agreement marks the end of numerous difficulties in Uganda’s petroleum sector, facilitating more straightforward and reliable access to refined petroleum products from various international producers. He made these remarks during a meeting in Nairobi with Uganda’s President Yoweri Museveni, who was on a two-day State visit to Kenya. This visit followed the Uganda-Kenya Joint Ministerial Commission (JMC) meeting in Kampala, where both countries committed to the prompt and full implementation of their decisions.
President Ruto highlighted the strong historical, cultural, and economic ties between Kenya and Uganda, expressing their mutual dedication to regional peace and prosperity. The agreement also includes plans to extend the Standard Gauge Railway (SGR) from Naivasha, Kenya, through Uganda, and eventually to the Democratic Republic of Congo, further enhancing regional connectivity and trade.
