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Uganda’s Museveni and Kenya’s Ruto leaves investors guessing about oil impasse amid tensions

Uganda has signed a bill that all petroleum imports into the country is handled by the Uganda National Oil Company (UNOC), after signing the Petroleum Supply (Amendment) Act. It followed Kenya’s new policy of Government to Government (G2G) tender process and not the previous Open Tender System (OTS). Uganda believes the new system empowers too many middlemen, potentially driving up the price of the 2.5 billion litres of fuel the country imports annually, 90% of which is imported from Kenya. Uganda is a landlocked country. Following this, Presidents Museveni and Ruto, the Kenyan leader, were expected to resolve these differences through diplomatic discussions, but no conclusions after the meeting. Uganda wants UNOC automatically registered to import petroleum products while Kenya wants it to compete with Kenya private companies.

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