Kenya and Uganda have officially commenced discussions regarding the extension of the petroleum products pipeline from Eldoret to Kampala, a key infrastructure project poised to significantly impact the region’s fuel import market.
Last week, Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu, held a meeting with Kenya’s Ministry of Energy officials led by State Department for Petroleum Principal Secretary Mohammed Liban and later toured Kenya Pipeline Company (KPC) headquarter facilities.
Speaking while hosting Ssentamu, KPC Managing Director Joe Sang noted that “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”
“KPC is open and willing to collaborate with the Ugandan government to lay the Eldoret – Malaba pipeline” he added.
The project will entail construction of a multi-product oil pipeline from Eldoret to Malaba (Kenya-Uganda border) on Kenya’s part. However, Uganda will be responsible for building a connecting line to Kampala, while future expansions to Kigali, Rwanda is also being considered.
Speaking during her Nairobi trip Ssentamu noted that the visit entailed planning and preparation for the kick-off of the project as well as understanding Kenya Pipeline’s operations, infrastructure and human capacity.
This initiative follows Uganda’s recent transition to independent fuel imports, which began in early July, thereby ending its previous dependence on Kenya for the supply of refined petroleum products.
Under a new agreement between the Uganda National Oil Corporation (UNOC) and Vitol Bahrain, Uganda aims to secure more competitive fuel prices, while still relying on Kenya’s Port of Mombasa and the Kenya Pipeline Company’s (KPC) infrastructure for the transportation of these products to the Western Kenya depots of Eldoret and Kisumu.
The concept for this pipeline was first mooted in 1995 through a Memorandum of Understanding between Uganda and Kenya and was revisited in May 2024 following a feasibility study funded by the European Investment Bank, which confirmed the project’s viability.
Speaking in Nairobi while hosting Ugandan President Yoweri Museveni in May, President William Ruto said, “We have obliged our respective Ministers to take joint urgent measures to mobilise resources for the implementation of this regional shared infrastructure and report on progress by the end of 2024.”
To facilitate the successful implementation of this regional infrastructure, both countries have committed to appointing a joint committee to oversee quality control and have agreed to mobilize resources, with progress reports expected by the end of 2024.
