Ugandan President Yoweri Museveni has clarified his recent remarks on oil importation from Kenya, dismissing allegations that he accused the Kenyan government of exploiting Uganda. According to reports, Museveni stated that his initial comments were misinterpreted by some Kenyan media outlets. He emphasized that his statements were about Uganda's past practice of importing petroleum products through Kenyan middlemen.
Museveni revealed that he was informed about Uganda's reliance on Kenyan middlemen for oil imports by former Kenyan Senator Cyrus Jirongo in 2019. He claimed that this practice was changed in 2023 after Uganda signed an agreement with Vitol, an international energy company, to import petroleum products directly. This new arrangement led to a significant reduction in Uganda's import costs.
Under the new agreement, signed on June 18, 2023, Uganda's additional costs for importing one ton of diesel decreased from $118 to $83. Similarly, the costs for one ton of gasoline and jet fuel decreased from $97.50 to $61.50 and from $114.25 to $79.25, respectively. Museveni attributed these changes to Uganda's efforts to revamp its oil importation strategy and reduce costs.
Museveni expressed gratitude to Kenyan President William Ruto for supporting Uganda's new importation strategy, despite opposition from some Kenyan individuals. He credited Ruto's backing for enabling Uganda to utilize Kenya's petroleum infrastructure, allowing Uganda to transport imported oil through Kenya's pipeline.
As a result of the new arrangement, Uganda acquired a 20.15% stake in Kenya's petroleum infrastructure. Museveni emphasized that this development allows Uganda to continue utilizing Kenya's infrastructure while diversifying its oil importation channels. He clarified that Uganda's previous reliance on Kenyan middlemen for oil imports was a practice he learned about from Jirongo in 2019.
Museveni accused some Kenyan media outlets of distorting his words, stating that they had "put a red line" through his statements. He reiterated that his initial comments were not meant to criticize the current Kenyan government. The clarification comes amid heightened scrutiny of Uganda's oil importation practices and its relations with Kenya.
The development highlights the evolving dynamics in the region's energy sector, with countries seeking to optimize their importation strategies and reduce costs. Uganda's new arrangement with Vitol is expected to have a positive impact on the country's economy, and Museveni's clarification aims to dispel misconceptions about his stance on oil importation from Kenya.
Key points
- Museveni clarifies that his comments were about Uganda's past practice of importing petroleum products through Kenyan middlemen.
- Uganda changed its oil importation strategy in 2023, signing an agreement with Vitol to import petroleum products directly.
- The new arrangement led to a significant reduction in Uganda's import costs for petroleum products.
