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Uganda has accused Kenya of reneging on an earlier commitment, made in April last year, to support Kampala’s quest to directly import its fuel starting this month. President Yoweri Museveni said that Kenyan middlemen were behind the high pump prices in Kampala even as global prices of the commodity continue to fall.
In a letter addressed to his Kenyan counterpart, Uhuru Kenyatta, Museveni said that Uganda had secured a deal with a Saudi Arabian company to supply its fuel needs at a lower cost than the current arrangement, which involves buying from Kenyan refineries and depots. He said that Uganda expected Kenya to facilitate the transit of the fuel through its territory, as per the East African Community protocol.
However, Museveni claimed that some Kenyan officials and businessmen were obstructing the deal and imposing unnecessary fees and taxes on the Ugandan fuel trucks. He said that this was unacceptable and amounted to economic sabotage. He urged Kenyatta to intervene and ensure that the agreement was honored.
Museveni said that Uganda was spending too much on fuel, which was affecting its economic growth and development. He said that the direct importation of fuel from Saudi Arabia would save Uganda about $300 million per year, which could be invested in other sectors. He also said that the lower fuel prices would benefit the Ugandan consumers and reduce inflation.
Kenya has not yet responded to Museveni’s letter, which was leaked to the media on Tuesday. Kenya is Uganda’s main trading partner and the largest source of its fuel imports. The two countries have a long history of cooperation and rivalry in the region.
