The Ugandan government has filed a lawsuit against Kenya over the petroleum products import agreement from Mombasa port.
Uganda, via its Attorney General, alleges in a complaint filed at the East African Court of Justice that the Kenyan government has blocked EPRA from granting them a license to import oil into Uganda from Mombasa.
According to court filings submitted on December 28, 2023, Uganda asserts that it imports over 90% of its refined petroleum products through the Port of Mombasa in Kenya, with the products being delivered to Uganda via a pipeline run by the Kenyan Pipeline Company Limited (KPC).
Further, Uganda contends that the importation and supply of refined petroleum products into the country has historically been handled by the Oil Marketing Companies (OMC) operating in Kenya through the Kenya Open Tender System (OTS) and later through the Government-to-Government agreements between Kenya and foreign governments, which Kenya adopted in early 2023.
As per the agreement, OMCs functioning in Kenya procure petroleum products, which they then supply to Uganda’s OMCs.
Furthermore, a policy change was made by the Ugandan government regarding the procurement, importation, and delivery of petroleum products for the domestic market.
Thus, Uganda authorized the Applicant, through Uganda National Oil Company (UNOC), to be the exclusive importer and supplier of all petroleum products for the Ugandan market.
As a result, sometime in April 2023, Uganda initiated discussions with Kenyan authorities over the new petroleum product sourcing, importation, and supply policies intended for the Ugandan market.
According to the principles and articles of the treaty and its protocols, Kenyan authorities guaranteed Ugandan authorities that Kenya would back them unconditionally in carrying out the aforementioned policy.
“Upon engagements with the relevant authorities in Kenya, UNOC sought to enter into a Storage and Transportation Agreement with KPC. Consequently, UNOC was required by the Respondent to meet certain regulatory requirements including obtaining an Import, Export and Wholesale of Petroleum Products (except LPG) Licence (hereinafter referred to as “the Licence”) from EPRA to utilize the petroleum transit infrastructure in Kenya, especially the Kenya Pipeline systems in furtherance of the new Ugandan policy,” court documents read.
Read: Uganda To Cease Sourcing Fuel Products From Kenya Over Deal with the Gulf
Uganda claims that because the petroleum products in question were entirely transit commodities and not intended for Kenya, the regulations constituted an unwarranted obstacle to the implementation of its petroleum program.
The landlocked country further states that it requested the Republic of Kenya’s assistance at all relevant times to prevent its state organs from violating the Treaty and Protocols’ principles and requirements.
Uganda argues that it is a landlocked Country and has the right, under the Treaty for the Establishment of the East African Community and the United Nations Convention on the Law of the Sea, to which the Republic of Kenya is signatory, of access to and from the sea and freedom of transit through the territory of Kenya by all means of transport.
Uganda wants a declaration that the actions of Kenya complained of above contravene Articles 5(1), (3)(a), (b) and (h):6(b).(d) and (f); 7(1)(a) (b); 8(1)(a) and (c); 23; 27; 28; 76(1); 89(b) and (e); 90(j); 93(c) and (d); and 130 of the Treaty for the Establishment of the East African Community and Articles 3(2), 4(2)(a), 5(1), 18 and 38 of the Protocol
“A declaration that the action of the Republic of Kenya restraining EPRA from issuing the Licence to the Applicant contravenes Articles 5(1), (3)(a), (b) and (h); 6(b) (d) and (f); 7(1) (a), (b); 8(1)(a) and (c); 23; 27, 28; 76(1); 89(b) and (e); 90(1); 93(c) and (d); and 130 of the Treaty for the Establishment of the East African Community and Articles 3(2), 4(2)(a), 5(1), 18 and 38 of the Protocol,” Uganda argues.
Additionally, it requests a declaration that the Republic of Kenya’s action, which forbids the applicant from receiving any waiver of the licencing requirements for the license, is in violation of Articles 3(2), 4(2)(a), 5(1), 18 and 38 of the Protocol, as well as Articles of the Treaty for the Establishment of the East African Community.
The Republic of Kenya was permanently barred from placing unjustifiable limitations on UNOC’s ability to access the KPC system.
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