The Uganda National Oil Company (UNOC) is expected to start importing fuel through Kenya after a resolution of a legal matter relating to obtaining a license from the Kenyan government.
On March 28, 2024, UNOC stated that the issues pertaining to the licensing process had been resolved.
“UNOC is pleased to announce a significant development in its operations, as it prepares to begin importing fuel through Kenya. This follows the resolution of a legal matter pertaining to the licensing process in Kenya,” the Authority noted in a statement dated March 28.
The decision was reached after the parties involved in the constitutional petition filed in the High Court of Kenya in Machakos opted to withdraw their petition.
UNOC, recognizing the lack of constitutional basis in the petition, consented to its withdrawal.
This action effectively brought the matter to a close.
“We are pleased to have resolved this legal matter and to move forward with our plans to import fuel through Kenya,” UNOC stated.
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“This development contributes immensely to our journey to enhancing Uganda’s energy security.”
Additionally, the oil company stated that a process is currently underway to issue UNOC the necessary permit.
Once the license is issued, the company will be able to import fuel directly through the Kenya Pipeline Company.
In the statement, the company vowed to remain committed to fostering cooperation and enhancing energy security while adhering to the highest standards of operational excellence.
UNOC sues Kenya for Fuel License
The Government of Uganda had filed a lawsuit against Kenya at the East African Court of Justice, seeking a judicial resolution in the disputed oil importation agreement.
At some point, Uganda threatened to turn to Tanzania as an alternative to importing oil through Kenya to ignite fears of collapsing economic cooperation between the two countries.
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Kenya found itself in this critical condition after it declined to grant UNOC a license to import fuel directly and instead restricted it to rely on local oil marketing companies.
The November 2023 incident prompted Uganda to file a case in the regional court to force Kenya to grant the license.
About Uganda National oil company
Uganda National Oil Company (UNOC) is a limited liability company wholly owned by the Government of Uganda.
The company is mandated to handle the Government of Uganda’s commercial interests in the petroleum sector.
Additionally, it’s the company’s responsibility to ensure that the resource is exploited sustainably.
