On 28 December 2023, the Republic of Uganda through its Office of the Attorney General, instituted an action against the Republic of Kenya at the First Instance Division of the East African Court of Justice.
The Republic of Uganda (which is a landlocked country) was reportedly importing approximately 90% of its refined petroleum products through Kenya’s port of Mombasa. Transportation of the refined products is through a pipeline system owned and operated by a Kenyan government-owned company, Kenyan Pipeline Company Limited (KPC).
The importation and supply of refined petroleum products into Uganda was initially executed by Oil Marketing Companies (OMCs) operating in Kenya through the Kenya Open Tender System, and later inter-government arrangements between Kenya and foreign governments.
The OMCs operating in Kenya would in turn sell the same products to Uganda’s OMCs. To discharge itself from supply vulnerabilities, the Ugandan Government adopted a new policy that resulted in the Ugandan government-owned company, Uganda National Oil Company (UNOC) becoming the sole authorised entity charged with the responsibility of sourcing, importing, and supplying petroleum products for the Ugandan market.
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