Fuel prices to drop as Kenya agrees to license UNOC


Uganda National Oil Company (UNOC) will start direct importation of oil through Kenya in May 2024 after Kenya agreed to license it, marking the end of a feud between the two East African Community member states.

Uganda had been blocked from acquiring a license to import oil through Kenya by a court petition filed at the High Court in Machakos, as the petitioners cited noncompliance by UNOC.

The Energy and Petroleum Regulatory Authority (EPRA) announced on Wednesday that it will finally issue a permit to UNOC after the case was withdrawn.

Energy Cabinet Secretary Davis Chirchir said Wednesday, March 27, 2024, that work is in progress to issue a permit that will allow UNOC to import fuel directly through Kenya Pipeline Company (KPC).

“You will see UNOC getting a license, and then we will see how to work together because the usage of our pipeline is an opportunity for us. They will employ Kenya Pipeline Company’s infrastructure, so there will be no loss of opportunity; the transporter will remain KPC. We are working closely with Uganda to resolve the challenge, he said.

UNOC was happy with the development, as the company’s head of corporate affairs, Sarah Banage, said the development will contribute greatly to their journey of enhancing Uganda’s energy security.

“This development contributes immensely to our journey to enhancing Uganda’s energy security. Work is currently underway to issue UNOC the necessary permit that will enable us to import fuel directly through Kenya, he said.

The license from the Energy and Petroleum Regulatory Authority will enable UNOC to access the storage and transport network of KPC from the port of Mombasa to Kisumu, thus easing fuel transportation. This is expected to lead to a reduction in fuel costs.


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