President Yoweri Museveni’s recent visit to Kenya has yielded significant diplomatic progress, particularly in the petroleum sector, with the signing of a crucial agreement between the two nations.
During his visit, President Museveni and his Kenyan counterpart, William Ruto, presided over the signing of a tripartite agreement concerning the importation and transit of refined petroleum products from Kenya to Uganda. The ceremony took place at the State House in Nairobi on Thursday, May 16, 2024.
The agreement involves the governments of Uganda and Kenya, along with the Uganda National Oil Company (UNOC), and is aimed at facilitating the transportation of petroleum products through Kenya to Uganda.
According to a joint communique issued by officials from both countries, the agreement is significant for the transportation of petroleum products across borders. It enables UNOC to directly import refined petroleum products from various producers in different jurisdictions. This arrangement is expected to address existing challenges within Uganda’s petroleum sector, leading to improved efficiency and reliability.
President Museveni’s visit to Kenya was part of efforts to bolster bilateral relations and enhance cooperation across various sectors to promote mutual prosperity and development. Accompanied by high-ranking government officials, including Rebecca Kadaga, the First Deputy Prime Minister, and Minister for East Africa Community Affairs, and John Mulimba, Minister of State for Regional Affairs, Museveni’s visit aimed to solidify partnerships between the two countries.
During the visit, Museveni and Ruto discussed the need to ensure the implementation of agreements reached between the two nations. They directed their respective foreign affairs ministries to develop modalities for implementing these agreements effectively.
In addition to the petroleum pact, the two leaders signed several memoranda of understanding (MOUs) covering various areas of cooperation. These MOUs include agreements on youth affairs, sports, education, training, and scientific research, among others. They emphasized ongoing discussions to conclude bilateral instruments in additional areas such as cross-border cooperation, defense and security, agriculture, livestock development, science, technology, and innovation.
Both heads of state underscored the importance of trade as a driver of economic growth and development for both countries. They urged government officials and private sectors from both nations to intensify their interactions and capitalize on the favorable business environment fostered by their respective governments.
The signing of the petroleum agreement between Uganda and Kenya marks a significant milestone in their bilateral relations. It not only strengthens economic ties but also resolves legal disputes, such as the court case where Uganda challenged Kenya’s prohibition on issuing a petroleum import license to UNOC.
Currently, Uganda imports the majority of its refined petroleum products through the port of Mombasa in Kenya, utilizing the pipeline owned and operated by the Kenyan Pipeline Company Limited. With the newly signed agreement, both countries look forward to further enhancing their cooperation in the petroleum sector for mutual benefit.
