Kenya has confirmed being engrossed in a diplomatic tiff with Uganda drawn from the controversial oil deal between the two countries.
Govt Spokesperson, Isaac Mwaura stated that Uganda sued Kenya at the East Africa Community court for breaching the deal which was to allow Uganda to continue importing petroleum products via the Port of Mombasa.
Speaking in an interview with Citizen TV on Thursday, January 11, Mwaura stated that the matter was in court and Kenya would not interfere with legal proceedings.
According to Mwaura, the Port of Mombasa has not yet guaranteed a return on investment based on the substantial amount of money channelled towards its construction and renovation. As such, Kenya was concerned that the port was being misused by importers who contributed little value to Kenya's economy.
“Kenya has a right to benefit from the foundations it has placed to put its tax on.
"So with Kenya trying to strategically position itself in the global economy, it has to ensure that it properly utilises its resources" Mwaura commented.
He also alleged that the oil import system in place poses numerous challenges to Kenya's capability to maintain its dollar reserve.
The government has thus been forced to make purchase orders two months before the product arrives, to manoeuvre the unpredictable changes in the dollar shilling exchange rates.
However, out of all the oil being imported, 40 per cent is being sold to Uganda and other East African countries.
Mwaura further clarified that any disparity that emanated from the deal should have been resolved diplomatically. However, with Uganda opting to seek legal redress and the matter being sub judice, Kenya had no other option but to wait for the outcome.
Two months earlier, Uganda's President Yoweri Museveni on November 7, 2023, accused Kenyan middlemen of ballooning prices despite his country being a certified Oil Marketing Company (OMC) in Kenya.
A month later Uganda accused the Energy and Petroleum Regulatory Authority (EPRA) of denying it a licence to operate as an OMC and thus threatened to import fuel with or without approval.
However, before filing a lawsuit in court, President Museveni pledged to consult Ruto rather than being coerced by his legislators to retaliate.
