The Kenya Pipeline Company announced on Tuesday that Kenya and Uganda have begun discussions on extending the petroleum products pipeline from Eldoret to Kampala.
Uganda’s Energy Minister Ruth Ssentamu met top officials in Kenya’s energy Ministry among them Principal Secretary Mohammed Liban.
The extension will need Kenya to construct a multi-product pipeline from Eldoret to the Kenya-Uganda border town of Malaba, which is about 127 kilometres from Eldoret.
Meanwhile Uganda will put a connecting line from Malaba to the capital Kampala, about 236 kilometres. Future expansion to the Rwandan capital Kigali has also been mooted.
“Extension of the pipeline to Uganda is a strategic move for Kenya as the country seeks to regain its competitive advantage in the petroleum export market, particularly in light of Uganda’s new importation strategy,” Joe Sang KPC managing director stated.
The project is intended to boost the region’s fuel import market and follows Uganda’s recent transition to independent fuel imports earlier this month, ending its previous dependence on Kenya for the supply of refined petroleum products.
According to a new agreement between the Uganda National Oil Corporation (UNOCO) and Dutch energy multinational Vitol Bahrain, Kenya’s western neighbour aims to secure more competitive fuel prices.
Earlier this year, Kenya and Uganda were at loggerheads after Kenya denied Uganda a license to operate locally and handle fuel imports to Kampala.
