Ugandans have faulted President William Ruto’s administration for imposing a Ksh5 billion ($40 million) bond fee on fuel imports passing through the port of Mombasa.
According to PML Daily, a Ugandan news outlet, the latest move could hamper President Yoweri Museveni’s efforts to lower pump prices that have been on the rise for months.
Uganda’s minister of Energy expressed disappointment in the decision, claiming it could prompt the Uganda National Oil Company (UNOC) to increase pump prices.
The energy minister also stated the move to hike the levy on Ugandan petroleum imports was a major hindrance to its ambitions and that it contradicted the spirit of the East African Community.
President William Ruto (right) and his Ugandan counterpart Yoweri Museveni at State House in Nairobi on May 16, 2024.
President William Ruto (right) and his Ugandan counterpart Yoweri Museveni at State House in Nairobi on May 16, 2024. PCS
“The money we have been losing to middlemen, which the government is trying to save, will now go to the Kenyan government,” claimed the Chairperson of the Sustainable Energies and Petroleum Association (SEPA) in Uganda.
“The tax will force UNOC to automatically increase the pricing to make profits,” he added as he urged Ruto’s administration to reconsider the move.
According to sources privy to the information, Uganda is now exploring alternative routes, such as the southern corridor, to reduce its reliance on Kenya for fuel imports.
The move comes hardly two months after President William Ruto and Yoweri Museveni jointly agreed on an extension of the oil pipeline from Eldoret to Uganda.
During Museveni’s visit to Nairobi, the duo underscored the need for cooperation stating the move would bolster trade relations between the two nations.
The two Heads of State also signed an agreement that paved the way for the Uganda National Oil Company to import petroleum products through the port of Mombasa.
“The agreement on the importation and transit of refined petroleum products through Kenya to Uganda whose signing we’ve just witnessed enables Uganda National Oil Company Limited to import refined petroleum products directly from producers in different jurisdictions,” Ruto stated in a joint presser with Museveni.
“Kenya and Uganda are firmly united by relations deeply rooted in shared history and culture and aspirations for regional peace and prosperity,” Ruto added.
