UGANDA National Oil Company (UNOC) announced a significant breakthrough as a legal hurdle obstructing its oil product imports through Kenya has been successfully resolved, signalling a pivotal step forward for the long-anticipated imports.
In a statement released on Thursday, the state-run oil agency confirmed that the court case, which had impeded its import plans through Kenya, has been withdrawn by the petitioners who had raised objections before the Kenyan constitutional court.
‘We are pleased to have resolved this legal matter and to move forward with our plans to import fuel through Kenya. This development contributes immensely to our journey to enhance Uganda’s energy security,’ stated the UNOC in its release, without specifying the reasons behind the withdrawal of the petition.
The statement further noted ongoing efforts to secure the necessary permits for UNOC to commence fuel imports directly through the Kenyan Pipeline Company.
The resolution comes after Ugandan President Yoweri Museveni and his Kenyan counterpart, William Ruto, convened in Uganda the previous month, where they mutually agreed to address the impasse in an amicable manner.
The legal dispute dates back to December when Uganda lodged a case against Kenya at the East African Court of Justice, following Nairobi’s denial of a licence to UNOC to function as a local oil marketer and manage fuel imports destined for Uganda.
Uganda, a landlocked nation, had been exploring the possibility of importing petroleum products via neighbouring Tanzania as an alternative to the Kenya route, amidst the legal uncertainties.
Presently, nearly 90 percent of Uganda’s petroleum imports traverse Kenya annually, amounting to approximately 2.5 billion litres valued at about $2bn, as reported by UNOC.