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Uganda is in discussions with Tanzania regarding the possibility of importing all of its oil products through Dar es Salaam, marking a potential shift away from using Kenya’s Mombasa port for imports, Uganda’s Energy minister informed the press on Thursday.
Uganda has expressed dissatisfaction with the current arrangement where Ugandan fuel companies procure 90 percent of their supplies through affiliated firms in Kenya. President Yoweri Museveni has voiced concerns about this setup, citing risks of supply disruptions and elevated pump prices.
In response to these concerns, Uganda announced in November its intention to grant exclusive supply rights for all petroleum products to a unit of global energy trader Vitol. In 2022, Uganda imported petroleum products valued at $1.6 billion, primarily sourced from the Gulf region.
Initially, the government had planned for imports to continue arriving via Kenya. However, Energy Minister Ruth Nankabirwa noted that the Kenyan government declined to issue the necessary license.
“We are engaged in negotiations with the Tanzanian government. Technical discussions are ongoing, and I will soon be meeting Her Excellency, the president, regarding this matter,” Nankabirwa stated. “Our objective is to secure a route that ensures reliable petroleum supplies.”
There was no immediate response from Kenya’s Energy and Petroleum Regulatory Authority (EPRA) or Tanzanian officials when contacted for comment.
