Kenya, Uganda in talks to extend petroleum pipeline from Eldoret to Kampala

According to a report by Kenyan local media outlet KBC, Ugandan Energy Minister Ruth Nankabirwa Ssentamu visited Kenya last week to engage in talks with Kenyan energy officials, including Principal Secretary Mohammed Liban. During her visit, Ssentamu toured the Kenya Pipeline Company (KPC) headquarters to gain a deeper understanding of their operations and discuss the proposed pipeline extension.

KPC Managing Director Joe Sang expressed optimism about the project, noting that the extension would strengthen Kenya's position in the petroleum export market. This is particularly relevant given Uganda's recent move towards independent fuel imports. Sang emphasized KPC's readiness to collaborate with Uganda on the Eldoret-Malaba section of the pipeline, highlighting the mutual benefits of such a partnership.

Extension to Kigali

The ambitious project involves constructing a multi-product pipeline from Eldoret to the Malaba border, where it will connect to a new line extending to Kampala. Additionally, there are plans for a potential further extension to Kigali, Rwanda, which would significantly broaden the pipeline's impact on the region's fuel distribution network.

During her visit, Minister Ssentamu highlighted the importance of the project for Uganda, stating that the discussions were focused on planning and understanding KPC's operations. The project is seen as a strategic move to secure lower fuel prices for Uganda, while still utilizing Kenya's Port of Mombasa and KPC infrastructure for transporting products to western Kenya depots.

This renewed interest in the pipeline project follows Uganda's decision in early July to end its reliance on Kenya for fuel supplies. This shift came after a deal between the Uganda National Oil Corporation and Vitol Bahrain, aimed at reducing fuel costs for Uganda. Despite this move, Uganda continues to leverage Kenya's logistical advantages to support its fuel distribution needs.

The concept of extending the pipeline was first proposed in 1995 but gained renewed momentum in May following a feasibility study funded by the European Investment Bank. The study's positive outcomes have revitalized efforts to bring the project to fruition.

In May, Kenyan President William Ruto announced that Kenya and Uganda would form a joint committee to oversee the project's implementation and resource mobilization. This committee is tasked with ensuring that the project progresses smoothly, with progress reports expected by the end of the year.

The successful extension of the pipeline from Eldoret to Kampala promises to enhance the energy security and economic integration of East Africa. By streamlining fuel imports and distribution, the project is expected to bring significant benefits to both Kenya and Uganda, fostering closer ties and cooperation between the two nations.