Uganda's new contract is designed to streamline the country's hydrocarbon supplies by avoiding congestion at the loading terminal in Kenya's neighboring Mombasa port, the Business Daily reported Wednesday.
According to Uganda Energy Permanent Secretary Kabagambe Kaliisa, the new shipment is to arrive Dec. 10 in Mombasa, in conjunction with a second shipment slated for Kenya.
The new oil shipment tender system comes after importation of products meant for transit by oil marketers was identified as one of the causes of bottlenecks at Uganda's Kipevu fuel facilities, leading to supply disruptions and significant price increases in both Kenya and the Great Lakes region.
Kenya's Ministry of Energy subsequently banned imports outside the legal system established in 1994 as the country liberalized its economy. In the future Ugandan fuel importers will give their orders to affiliates in Kenya for consolidation before the ministry issues tenders.