Tensions between Kenya and Uganda over fuel import rights have simmered down with Kenya’s Energy Cabinet Secretary announcing the finalization of a permit allowing Uganda National Oil Company (UNOC) to directly import fuel through Kenya Pipeline Company (KPC). This development aims to leverage KPC’s infrastructure, ensuring continued revenue for Kenya while fostering collaboration between the two nations. The resolution follows the withdrawal of a lawsuit that aimed to block UNOC’s licensing, paving the way for the issuance of the license expected soon. UNOC’s entry into the Kenyan market may impact local oil companies, but it also marks a strategic shift towards serving private distributors, indicating a potential transformation in the regional fuel market landscape.

Despite UNOC becoming a direct importer, Kenya Pipeline Company (KPC) will maintain its revenue streams by providing storage facilities and transportation networks for fuel delivery to Uganda. Previous challenges, including UNOC’s failure to meet Kenyan regulations and access Mombasa port and KPC infrastructure, prompted Uganda to explore temporary solutions through Tanzania. However, with the licensing dispute resolved, both Kenya and Uganda can now proceed with a more cooperative approach, fostering stability and mutual benefit in the regional fuel market.