Museveni Stands Firm on Decision to Ban Fuel Imports from Kenya
President Museveni announced that the Ugandan government will assume control over the importation of all petroleum products due to what he described as years of excessive charges by intermediaries from Kenya.
He stated in a release on November 5, 2023, that the issue stemmed from collusion between Ugandan civil servants and Kenyan middlemen, leading to deceitful negotiations that disadvantaged Uganda.
“When we came into Government, we assumed that the Civil Servants would deal with money, administration, procurement, etc., and we would deal with policy, ideology, strategy, security, etc. However, in a number of cases, these wonderful People, really let down their country,” he wrote.
The President pointed out specific petroleum product prices, highlighting that middlemen are making over 40% profit from selling these products to Uganda.
As an example, he referenced the cost set by middlemen for a tonne of petrol at $97.5, which stands significantly higher than the price from bulk suppliers or refiners at $61.5. Similarly, the cost of diesel from middlemen was noted at $118 per tonne, notably surpassing the bulk suppliers or refiners’ price of $83 per tonne.
“These are prices when the products have arrived at the East African Ports. You can see the huge loss Uganda has been incurring on account of our wonderful people,” he added.
The head of state found it perplexing that the entire country was purchasing petroleum products from middlemen.
“Without my knowledge, our wonderful People, were buying this huge quantity of petroleum products from middlemen in Kenya. A whole country buying from middlemen in Kenya or anywhere else!! Amazing but true,” he said.
“Why not buy from the Refineries abroad and transport through Kenya and Tanzania, cutting out the cost created by middlemen? Those involved were not bothered by these issues,” he said.
Upon discovering the extent of exploitation, he expressed that he made the decision to intervene.
“We have now contracted bulk and Refinery suppliers able to give us the lower prices. I have discussed this with H.E Ruto, the President of Kenya and our delegation is now in Dar-es-Salaam, discussing with Her Excellency Samia Suluhu.
“H.E Ruto is handling the Kenyan part. I salute his contribution. In a few years’ time, our Refinery will be up and running.
“I can assure the Inland East Africans of competitive petroleum products, free of distributions caused by middlemen. The whole of Uganda, North- Western Tanzania, Rwanda, Burundi, Western Kenya, South Sudan and Eastern DRC, will benefit.”
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Museveni Stands Firm on Decision to Ban Fuel Imports from Kenya
