Africa

Uganda yet to withdraw oil case against Kenya despite agreement

The East African Community headquarters in Arusha, Tanzania. (Photo: EAC)

By Barack Oduor | Friday, April 26, 2024

Before the deal was reached, Uganda had been seeking other ways of importing petroleum products, including through a Tanzanian port, after its oil retailers for decades received their cargo through affiliated firms in Kenya.

Uganda is still pending the withdrawal of a lawsuit it filed against Kenya at the East African Court of Justice in Arusha, Tanzania, despite the parties having reached a peaceful resolution after disagreements over an oil deal.

The truce between the two neighbouring countries was reached after Nairobi agreed to allow Kampala to import fuel through the port of Mombasa using its Uganda National Oil Company (Unoc).

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East African Court of Justice Deputy Registrar Christine Mutimura-Wekesa confirmed the non-withdrawal of the case that had fostered sour relations between the two countries.

"No Notice of Withdrawal has been filed...We are yet to schedule the hearing as the court works on a "first in –first out" basis and so priority will be given to matters filed earlier," she said.

Last month, an agreement between the two countries was reached on the oil importation deal that saw Kenya allow Uganda's state oil firm to import petroleum products through its port of Mombasa.

Before the deal was reached, Uganda had been seeking other ways of importing petroleum products, including through a Tanzanian port, after its oil retailers for decades received their cargo through affiliated firms in Kenya.

Solomon Muyita, spokesperson for Uganda's Ministry of Energy and Minerals, said the first shipment under the new system was expected in May.

"Kenya has agreed to give us a licence. Unoc (Uganda National Oil Company) is now free to import through Mombasa," he said.

The agreement also saw a case filed at the High Court in Machakos to block the licensing of Unoc was withdrawn.

Uganda had taken the matter to court accusing Kenya of placing unrealistic restrictions on Unoc before allowing it to access the KPC system to transport its petroleum products from the Port of Mombasa.

Uganda's Attorney-General said in the EACJ case that Kenya was breaching various articles of the EAC Treaty and the Protocol for the Establishment of the East African Community Common Market.

It was Uganda's argument that it does not require a licence from EPRA to access the KPC system to transport petroleum products.

Among the orders sought by Uganda is a declaration that restrictions placed by EPRA and orders obtained from the Kenyan High Court blocking the regulator from issuing the licence to UNOC contravene the EAC Treaty.