Kenya is making progress towards issuing a license to the Uganda National Oil Company (Unoc) that will enable them to import fuel directly through the Kenya Pipeline Company (KPC). This move comes after a period of dispute that led to a major feud between the two countries, with Uganda seeking access to KPC's infrastructure.
Energy Cabinet Secretary Davis Chirchir recently announced that efforts are underway to facilitate the issuance of the permit to Unoc, emphasizing the potential for collaboration between the two countries in utilizing the pipeline. The licensing process, which is expected to be finalized next month, could bring an end to the disagreement and allow Unoc to procure fuel from Vitol Bahrain, potentially affecting local oil marketing companies in Uganda.
Despite initial challenges faced by Unoc in obtaining the license, the recent withdrawal of a case filed at the High Court in Machakos signifies a positive development in the licensing process. Kenya's decision to license Unoc is seen as a step towards resolving the diplomatic tension and enabling the direct importation of fuel, a move that could impact the revenue streams of local oil firms in Uganda.