Back to business as RUTO and MUSEVENI seal a deal on fuel after months of bad blood – See what they agreed going forward?

Wednesday, February 28, 2024 - President William Ruto has revealed that Kenya sealed a deal with Uganda on fair distribution and pricing of fuel after months of a trade tiff. 

In a statement released by Ruto after meeting President Yoweri Museveni in Uganda, the Head of State emphasised that the new formula would see neighbouring countries benefit in terms of adequate distribution of fuel products.

He added that the two governments were also working to resolve the trade stalemate which saw Uganda sue Kenya at the regional court over an imbalanced trade arrangement.

On the other hand, he noted that Kenya will be championing the resumption of the construction of a pipeline connecting the two countries.

The developments come amidst plans by Uganda to completely cut off Kenya and construct a pipeline directly from Tanzania.

Uganda had accused Kenyan companies of selling fuel to Uganda exorbitantly, to make a profit at the expense of fair prices for Ugandan citizens.

Kenya and Uganda have differed in recent months over an imbalanced trade deal.

At the regional court, Kenya was accused of an unfair trade framework, with Uganda alleging that the Energy Petroleum and Regulatory Authority (EPRA) denied the Uganda National Oil Company (UNOC) a licence to import fuel directly from Kenya.

This is after Uganda passed the Petroleum Supply Amendment Bill 2023 which gave the national corporation all the power to be the sole importer and distributor of fuel to Uganda.

The bill passed by Uganda was aimed at cutting ties with Kenyan companies accused of prioritizing profit over fair pricing for its citizens.


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