Kenya Pipeline commits to resolve fuel supply hurdles for Uganda

The Kenya Pipeline Company (KPC) has committed to resolving long-standing inefficiencies in the fuel supply chain that have affected petroleum product delivery timelines and costs to Uganda, a key transit market.

This commitment comes after sustained complaints from Ugandan oil marketing companies (OMCs) over delays, poor handling, and congestion at key transit hubs, including Mombasa Port and inland depots. Uganda, a landlocked country, relies on Kenya for over 90 percent of its fuel imports.

Speaking during a stakeholder engagement forum in Nairobi attended by more than 100 Ugandan OMCs, KPC Managing Director Joe Sang acknowledged the challenges and pledged reforms to enhance service delivery.

“We are here to listen. Your feedback helps us improve. Efficiency is a shared goal, and we are acting on it,” said Sang.

KPC outlined several short- and medium-term solutions, including increased operational flexibility at its Western Kenya terminals, a 10-million-litre diesel tank addition in Kisumu, and enhanced product flow through Line 4, whose capacity has now increased from 350,000 to 510,000 litres per hour.

Also in the works is a liaison office in Uganda, expected to open by January 2026, to improve real-time coordination between the Kenyan operator and Ugandan stakeholders.

The company also highlighted the expanded 110-million-litre capacity at Port Reitz, and the strategic role of the Kisumu Oil Jetty, where 470 million litres have already been shipped across Lake Victoria to Mahathi Infra Uganda Limited since 2023.

“The jetty is a game-changer for regional fuel logistics,” said Kenya’s Cabinet Secretary for Energy and Petroleum, James Opiyo Wandayi, who led a recent tour of Uganda’s fuel infrastructure. “One barge carries 4.5 million litres—removing up to 150 trucks from our roads. That’s an investment in safety, the environment, and cost efficiency.”

Wandayi said a third barge is being introduced to meet growing demand and reduce pressure on regional road networks.

At the same meeting, Uganda National Oil Company (UNOC) board chairperson Mathias Katamba hailed KPC as “a pivotal partner” in Uganda’s economic growth, while CEO Proscovia Nabbanja noted that over 2.6 billion litres of product now flow annually from Kenya to Uganda through KPC infrastructure.

“We anticipate even higher volumes with continued economic growth. But we must also play our part,” Nabbanja cautioned. “Timely evacuation of product is essential to avoid congestion and unnecessary costs.”

Nabbanja also proposed the formation of a joint task force to tackle persistent operational bottlenecks and improve training for Ugandan marketers, especially in areas involving Kenya Revenue Authority (KRA) and KPC system integration.

OMCs were encouraged to take advantage of the newly launched LPG truck-loading facility at the Kenya Petroleum Refineries Ltd (KPRL), with consultations ongoing to develop a common-user LPG terminal to serve the wider East African region.

The renewed commitments between Kenya and Uganda mark a significant step toward improving fuel security and trade competitiveness in the Great Lakes region, particularly for Uganda, Rwanda, and the Democratic Republic of Congo.