Kenya and Uganda have initiated formal discussions to extend the petroleum products pipeline from Eldoret to Kampala.
This project is anticipated to significantly reduce the cost of overland fuel transportation to Uganda and beyond, thereby transforming the region’s fuel import landscape.
The talks were commenced between Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu, with Kenya’s Ministry of Energy officials, led by the State Department for Petroleum PS. Mohammed Liban, and toured Kenya Pipeline Company (KPC) headquarters.
The infrastructure initiative involves Kenya constructing a multi-product oil pipeline from Eldoret to the Malaba border, while Uganda will build a connecting pipeline to Kampala. There are also plans for potential future expansion to Rwanda.
“Extending the pipeline to Uganda is strategically crucial for Kenya to regain its competitive edge in the petroleum export market, especially in light of Uganda’s recent shift towards independent fuel imports,” stated Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu.
I was honored to be received by @kenyapipeline MD Joe Sang at the Kenya-pipeline Plaza accompanied by State Department for Petroleum PS @official_MLiban & Director Mohamed Birik as I am in Kenya to start the planning & preparation for the proposed Eldoret-Kampala-Kigali pipeline.… pic.twitter.com/2ImnayJl2u
— Ruth Nankabirwa Ssentamu (@NankabirwaRS) July 24, 2024
Uganda’s decision to independently import fuel, ending its reliance on Kenya, was implemented earlier this month through a new agreement between the Uganda National Oil Corporation (UNOC) and Vitol Bahrain.
This shift aims to secure more competitive fuel prices. However, Uganda will continue utilizing Kenya’s Port of Mombasa and the Kenya Pipeline Company’s (KPC) infrastructure to transport fuel to the western Kenyan depots of Eldoret and Kisumu.
The concept of extending the pipeline was initially proposed in 1995 through a Memorandum of Understanding between Uganda and Kenya.
A feasibility study funded by the European Investment Bank, completed in May 2024, confirmed the project’s viability. Both countries have now established a joint committee to oversee quality control, mobilize resources, and deliver progress reports by the end of the year.