Ugandan President Yoweri Museveni has publicly identified Kenyan Senator Jirongo as the person who alerted him to irregularities in Uganda's petroleum procurement process. According to Museveni, Jirongo informed him in 2019 that Uganda was purchasing petroleum through middlemen in Kenya rather than directly from suppliers. This revelation was made in a written statement responding to misrepresentation by some Kenyan media outlets of remarks made by Museveni while laying the foundation stone of a 320-million-litre oil storage centre at Buyala.
Museveni stated that he was unaware that Ugandan civil servants, including Permanent Secretaries and Commissioners, were procuring petroleum products for the country through middlemen based in Kenya. He tasked the then Minister Irene Muloni to sort out the mess, but no corrective action followed. The situation remained unresolved until 2023, when Uganda entered a new supply arrangement with Vitol, a company described as a bulk supplier with refineries worldwide. The initial agreement with Vitol was signed on August 18, 2023.
Museveni praised President William Ruto for facilitating Uganda's current oil arrangement. He said certain actors in Kenya had attempted to resist the new framework but that Ruto intervened decisively. Museveni expressed appreciation for Ruto's role in securing a new arrangement, which includes a 20.15% stake in the Kenya oil pipeline for Uganda.
The Government-to-Government oil deal has previously drawn scrutiny from legislators and civil society groups in both Kenya and Uganda over transparency concerns in the region's petroleum supply chain. The deal has been a subject of controversy, with many questioning the involvement of middlemen in the procurement process.
Senator Jirongo's revelation led to a thorough examination of Uganda's oil procurement process. The Ugandan government has since taken steps to ensure that petroleum products are sourced directly from suppliers, eliminating the need for middlemen. This move aims to increase transparency and reduce costs associated with the procurement process.
President Museveni concluded by expressing satisfaction with the bilateral arrangement under the Ruto administration. He stated that Uganda is happy with the Kenya Government's cooperation on this matter, particularly with regard to the oil pipeline deal. The two countries have strengthened their ties through this agreement, which is expected to benefit both nations.
The new oil arrangement is expected to have a positive impact on Uganda's economy, reducing costs and increasing efficiency in the procurement process. The agreement also marks a significant milestone in the relationship between Uganda and Kenya, demonstrating the potential for cooperation and mutual benefit between the two nations.
Key points
- Ugandan President Yoweri Museveni names Kenyan Senator Jirongo for exposing irregularities in G-to-G oil deal.
- Museveni praises President William Ruto for facilitating Uganda's new oil arrangement.
- Uganda secures 20.15% stake in Kenya oil pipeline under new agreement.
