Uganda seeks alternative oil product import routes

Landlocked Uganda plans to revive oil product imports via Tanzania to reduce its reliance on supply routes through Kenya.

Kampala is seeking alternative routes as a safeguard should any disruption to imports stem from a contested result in Kenya's general election next year. In 2007-08, post-election violence in Kenya paralysed operations in part of the transport corridor stretching from Mombasa to the Great Lakes, causing a shortage of petroleum supplies.

Political realignments in Kenya, notably a rift between President Kenyatta and his deputy William Ruto, who were elected on the same ticket in the 2013 and 2017 elections, have opened up the potential for unrest next year.

In a bid to guard against a repeat of 2007-08, Uganda began a trial delivery last month of 500,000 litres of petroleum products across Lake Victoria via the port of Mwanza in Tanzania, a route it stopped using 16 years ago. The product landed at Tanzania's port of Dar es Salaam and was transported by train to Mwanza before being loaded onto barges to cross Lake Victoria to Uganda.

"Our target is to be importing at least 20mn l/month across Lake Victoria from Tanzania via Mwanza, as well as the port of Kisumu in Kenya, before the 2022 election," permanent secretary of Uganda's energy ministry Irene Batebe told Argus.

Uganda receives over 185mn l/month of petroleum products, mostly channelled through Kenya. Kampala's plan to resume imports via Tanzania will have a limited impact on Kenya's trade with Uganda, according to Martin Heya, petroleum commissioner at Kenya's energy ministry. Tanzania has not developed enough infrastructure to outcompete Mombasa, and using train and road will make cargoes less price competitive, he said.

"We pump 1mn l/hour through the pipeline from Mombasa to Nairobi," Heya said. "Looking at the logistical and operational aspects, it will take Tanzania years to wrest the Ugandan market from us."

Kenya facilitates about 900mn l/month of petroleum product imports to Uganda, South Sudan, the Democratic Republic of Congo (DRC), Rwanda and Tanzania via its transport corridors.

By Mercy Matsiko