Uganda has initiated discussions to alter its oil import pathways, aiming to shift all oil product acquisitions through Tanzania instead of relying on Kenya.
Uganda's ministry of energy confirmed the ongoing negotiations with Tanzania to facilitate the importation of all oil products via the port of Dar es Salaam, potentially discontinuing imports through Kenya's Mombasa port.
The dissatisfaction with the prevailing system, where Ugandan fuel companies procure 90% of their supplies through associated entities in Kenya, prompted this strategic reconsideration.
In response to these challenges, Uganda unveiled plans in November to delegate exclusive supply rights for all petroleum products to a division of the global energy trader Vitol. The total value of Uganda's petroleum product imports in 2022 amounted to $1.6 billion, with the majority sourced from the Gulf region.
Initially, the government intended for these imports to continue via Kenya. However, Energy Minister Ruth Nankabirwa disclosed that the Kenyan authorities declined to issue the necessary license for this continuation.
"We are negotiating with the Tanzanian government. The technical teams are talking, and I will be meeting Her Excellency, the president on that," Nankabirwa said.
She emphasized the importance of establishing a secure petroleum supply route for Uganda's energy needs.