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CSOs ask govt to negotiate fuel terms with Kenya after Unoc deal

Mv Navig8 Martinez Fuel tanker docks at the Mombasa Port during the reception of Uganda's First Oil Consignment Shipment at the New Kipevu Oil Terminal (KOT) in this photo taken on July 3, 2024. PHOTO | KEVIN ODIT | NMG

What you need to know:

  • CSO's say there’s need to engage Kenyan authorities to resolve $40m fuel bond issue. 

Civil Society Organizations have asked government to re-negotiate for better terms with Kenya as Uganda attempts to engage the William Ruto-led administration to reconsider a $40million (about Shs148.3 billion) bond fee slapped on Uganda’s petroleum consignment earlier this month.

After Uganda’s initial petroleum imports from the United Arab Emirates and Kuwait were delivered in Mombasa last week, Kenyan authorities imposed the bond fee which Kampala fears may frustrate its plan to lower fuel pump prices.

"Uganda National Oil Company (Unoc) didn’t see this coming because our ability to execute projects in this country has been extremely very poor. They concentrated so much in kicking out the middlemen in Kenya but they [government authorities] paid less attention in what the role of the middleman was in Kenya,” Civil Society Budget Advocacy Group (CSBAG) executive director Julius Mukunda said.

Civil Society Budget Advocacy Group (CSBAG) executive director Julius Mukunda. PHOTO/SYLVIA KATUSHABE 

According to him, there’s need to engage Kenyan authorities to reverse the fee.

He added: “Let’s go and re-negotiate. There is no way we should back out. Let’s get in. we should get in and also be as shrewd as the middlemen in Kenya so that we can get oil to this country.”

The Executive Director of the Food Rights Alliance, Agnes Kirabo, offered a similar perspective during the National post- budget dialogue on nutrition financing in Kampala.

Citing the persistent rejection of Uganda’s maize products by other East African countries due to aflatoxins, Kirabo advised that parliament enacts a food and nutrition legislation to define quality standards government food production in Uganda.

Once done, CSO members believe Uganda’s agricultural products will have an edge on international market.

Speaking in support of the call to enact the said legislation, the chairperson of parliament’s committee on Agriculture, Linda Agnes Auma promised topersuade government to support the Private Member’s Bill in the offing.

She added: “This is matter should treated with urgency. We have a lot of citizens growing as if they are normal but their bringing has stunted them. They don’t think we expect them to think. And now that I am the chairperson of the Agricultural committee, I am going to discuss with government.”