Barely a week after Uganda slapped a new levy on farm produce being imported from Kenya, Museveni on Monday, April 22, announced more key directives that will see his country cut significantly its dependence on Kenya.
In a statement, Museveni remarked that Uganda had made key progress in drilling its oil.
This is a significant blow to Kenya considering Uganda imports 90 per cent of its oil through the Port of Mombasa in a deal worth Ksh15 billion annually.
Museveni speaking after meeting a multinational oil company remarked Uganda had harmonised crude oil supply and covered funding gaps with shareholders.
“We have engaged stakeholders on drilling plans and resolved payments for Ugandan sub-contractors,” he added signalling the end of dependency on Kenya and its ports.
Hours after inking the deal with the multinational oil company, Museveni further announced Uganda had identified Ethiopia as a friendly nation to partner in the aviation sector.
Museveni stated that his government was in the advanced stages of increasing the Uganda Airlines fleet for both cargo and passenger aircraft.
This move will necessitate investment in fleet maintenance and Museveni explained that in the meantime, Uganda would only handle light maintenance of its aircraft.
“Where applicable, we hope to utilise existing capacity for maintenance service in brotherly countries like Ethiopia until our fleet grows to allow us to have it done fully in Uganda,” Kenya was further isolated by the East African Community (EAC) member state.
Uganda's recent trade deals are poised to significantly impact Kenya's economy, given that it is one of Kenya's primary trading partners.
In 2023, Uganda continued to be the largest market for Kenyan goods, surpassing the Ksh100 billion revenue milestone for the first time.
This contrasts with Kenya's trade with Tanzania, its second-largest market, which generated Ksh68 billion in revenue.
