The Kenyan government has announced its intention to grant a license to the Uganda National Oil Company (UNOC), a development anticipated to resolve a prolonged dispute. Energy Cabinet Secretary Davis Chirchir disclosed on Wednesday that efforts were underway to issue a permit enabling UNOC to directly import fuel via the Kenya Pipeline Company (KPC).
This affirmation of UNOC’s licensing comes shortly after petitioners who had contested the Energy and Petroleum Regulatory Authority’s (EPRA) authority to grant the permit withdrew their case. Chirchir remarked, “We will explore collaboration opportunities as utilizing our pipeline presents an advantage for us.”
He elaborated, “They will utilize Kenya Pipeline Company’s infrastructure, ensuring no missed opportunities, with KPC remaining the transporter. We are in close collaboration with Uganda to address this challenge.” The dispute escalated to court when Uganda appealed to the regional court last December, seeking authorization to utilize KPC’s infrastructure.
UNOC had aimed to commence direct imports from January but encountered indefinite postponement after failing to secure an EPRA license. The Kenyan energy regulator cited non-compliance with legal requirements as the reason for its refusal.
The lawsuit filed by Royani Energy Limited, Acacia Ridge Construction, and two individuals at the Machakos High Court was withdrawn on March 22.
Uganda initiated plans for direct imports through UNOC several months subsequent to Kenya’s announcement of an agreement with Gulf majors – Saudi Aramco, Abu Dhabi National Oil Corporation, and Emirates National Oil Company – to import fuel on a 180-day credit period, aimed at alleviating dollar demand and bolstering the local currency, the shilling.
