Kenya and Uganda have officially started discussions on extending the petroleum products pipeline from Eldoret to Kampala, which would cost of overland transport to Uganda and beyond.
- The infrastructure project is expected to significantly impact the region’s fuel import market, the two governments said in a statement.
- It involves constructing a multi-product oil pipeline from Eldoret to Malaba on the Kenya-Uganda border, managed by Kenya.
- Uganda will handle the construction of a connecting line to Kampala, with possible future expansions to Rwanda.
“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,” Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu said.
This initiative follows Uganda’s recent shift to independent fuel imports, which began in early July, ending its previous reliance on Kenya for 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. However, it will continue using Kenya’s Port of Mombasa and the Kenya Pipeline Company’s (KPC) infrastructure to transport these products to the Western Kenya depots of Eldoret and Kisumu.
The concept for the pipeline’s extension was first proposed in 1995 through a Memorandum of Understanding between Uganda and Kenya. It was revisited in May 2024 after a European Investment Bank-funded feasibility study confirmed the project’s viability.
Now, both countries have appointed a joint committee to oversee quality control, agreed to mobilize resources, and to consider progress reports by the end of 2024.
