Ugandan President Yoweri Museveni says a Kenyan senator alerted him to Uganda’s use of middlemen in Kenya for fuel imports.
The disclosure was made on Thursday. It came during the groundbreaking of a major fuel storage terminal in Mpigi.
Senator Raised Alarm
Museveni said he had not known about the arrangement. He said the warning led him to question officials handling fuel imports.
“The person who woke me up first was a senator from Kenya,” Museveni said.
The senator was not named. Museveni said the revelation prompted a review of Uganda’s procurement system.
Fuel Costs Were Cited
Museveni said the old system carried higher premiums. Diesel was said to have fallen from $118 to $83 per metric tonne. Petrol was reported to have dropped from $97.50 to $61.50. Aviation fuel was also cited. Its premium was said to have fallen from $114.25 to $79.25.
The figures were presented by Museveni and Energy Permanent Secretary Irene Batebe. They describe procurement premiums rather than retail pump prices.
UNOC Takes Bigger Role
Uganda later gave the Uganda National Oil Company a larger role in imports. UNOC now works with Vitol to source fuel for the Ugandan market.
Fuel is still transported through Kenya. Mombasa and the Kenya Pipeline network remain part of the supply route.
The change followed Uganda’s 2023 Petroleum Supply Amendment Act. The law strengthened UNOC’s role in importing petroleum products. The move was aimed at reducing intermediary costs.
Kenya Link Remains
The shift did not end Uganda’s use of Kenyan infrastructure. Fuel imported by UNOC can still arrive through Mombasa. It is then moved through the pipeline before being transported into Uganda.
The system has therefore changed in procurement. But Kenya remains important to the supply chain.
New Storage Facility
Museveni’s remarks came as construction began on the Kampala Storage Terminal. The facility is planned to hold 320 million litres of petroleum products.
It is being developed by UNOC. The project is expected to strengthen Uganda’s fuel storage capacity.
Museveni said the new procurement model had reduced the premiums paid for fuel. He said the change followed the intervention triggered by the Kenyan senator’s warning.
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