Kenya is set to benefit from a new trade deal after Uganda picked the port of Mombasa as a transit point for the Tilenga Oil project cargo.
In a statement released by the Kenya Ports Authority (KPA), it was revealed that the port of Mombasa would handle more than 500,000 metric tonnes in the new deal.
From the port, known for its high-end equipment, workers will load cargo onto various trucks on transit vehicles which will then transport the freight to Uganda by road.
“Port of Mombasa is preparing to handle an estimated 500,000 metric tons of project cargo for Tilenga Oil Project in Uganda.
The announcement by KPA came after representatives from Uganda visited the port to inspect its infrastructure in readiness for the arrival of the first consignment in March.
“Total Energy Uganda is in charge of the project whose first shipment of the cargo is expected to arrive through the Port of Mombasa from March this year.
“Officials from Total Energy Uganda visited the Port of Mombasa to familiarize themselves with the operations and the facility,” read the statement in part.
The much-anticipated deal sailed through after President Yoweri Museveni oversaw the launch of the Lake Albert development project which is being undertaken in conjunction with Tanzania.
Lake Albert project encompasses the Tilenga and Kingfisher upstream oil projects in Uganda and the construction of the East African Crude Oil Pipeline (EACOP) in Uganda and Tanzania.
“The project partners announced the final investment decision and the launch of this major project representing a total investment of approximately Ksh1 trillion ($10 billion),” read a statement by Total Energy.
Over the years, Uganda has been a key trade partner of Kenya with the Port of Mombasa playing a pivotal role in foreign relations.
The increased cargo will push up the revenue of the port that handled over 34.54 million tonnes of cargo in 2021.
