Uganda National Oil Company (UNOC) says a court case that impeded its import of oil products through Kenya has been withdrawn, paving the way for the long-awaited import.

The state-run oil agency said in a statement that those who petitioned the Kenyan constitutional court opted to withdraw the case.

“We are pleased to have resolved this legal matter and to move forward with our plans to import fuel through Kenya.

“This development contributes immensely to our journey to enhance Uganda’s energy security,” the UNOC statement said.

The statement did not give reasons as to why the petition was withdrawn.

“Work is currently underway to issue UNOC the necessary permit that will enable us to import fuel directly through the Kenyan Pipeline Company,” the statement said.

In February, Ugandan President Yoweri Museveni and his Kenyan counterpart, William Ruto, met in Uganda and agreed to resolve the impasse amicably.

In December 2023, Uganda took Kenya to the East African Court of Justice after Nairobi denied UNOC a licence to operate as a local oil marketer and handle fuel imports headed to Uganda.

Landlocked Uganda had been considering importing petroleum products through neighbouring Tanzania as an alternative to the Kenya route.

Almost 90 per cent of Uganda’s petroleum imports currently traverse Kenya, accounting for approximately 2.5 billion litres valued at about $2 billion annually, according to UNOC.  

(Xinhua/NAN)