The Standard Group Plc is a multi-media organization with investments in media platforms spanning newspaper print operations, television, radio broadcasting, digital and online services. The Standard Group is recognized as a leading multi-media house in Kenya with a key influence in matters of national and international interest.

Standard Group Plc HQ Office,
The Standard Group Center,Mombasa Road.
P.O Box 30080-00100,Nairobi, Kenya.
Telephone number: 0203222111, 0719012111
Email: [email protected]

NEWS & CURRENT AFFAIRS

The Nairobian

Uganda, Rwanda seek extension of oil pipeline from Eldoret depot

Business

By Macharia Kamau | Dec 16, 2024

**A section of Standard Gauge Railway (SGR) train at Syokimau in Nairobi.[**Standard]

Kenya and her East African Community (EAC) neighbours Uganda, Rwanda and South Sudan have revived plans to construct a refined petroleum products pipeline from Eldoret through Kampala to Kigali.

The extension is expected to ease the transportation of fuel.

Pipelines delivering fuel to the two cities will give the two landlocked countries greater control over fuel importation, which is largely dependent on Kenya’s importation system that has in the past exposed them to shocks.

Products to the landlocked countries are mostly picked by trucks from Eldoret or Kisumu while a small portion is transported through Lake Victoria using vessels loaded at the Kisumu Oil Jetty and offloaded at Entebbe at a privately owned jetty.

The plan to extend the pipeline was mooted in 1995. While there have been talks over the years, there has been little progress until now.

Keep Reading business

In early May this year, Presidents William Ruto and Yoweri Museveni agreed on a refined petroleum products pipeline that was expected to ease the process of importing fuel for Uganda.

Petroleum refineries

The country largely relies on Kenya’s petroleum import system but has had to contend with major shocks in the recent past, which have resulted in procuring products directly from major petroleum refineries.

In July, senior officials from the two countries held talks that set the stage for the project that now appears to be gathering momentum and its scale expanded to include Kigali.

Last week’s meeting of officials from Kenya, Uganda, Rwanda and South Sudan could be seen as the project taking shape and also taking an expanded scale.

Principal Secretary (PS) for Petroleum Mohamed Liban said once the project is complete, it will foster sustainable development, economic integration and prosperity for the region, as well as set a strong foundation for future generations.

The PS was speaking in Entebbe Uganda, during a joint ministerial meeting for the Northern Corridor Integration Projects (NCIP) with representatives from the partner States, led by Uganda Minister for State for Energy Okaasai Sidronius and Rwanda High Commission’s Charge de Affairs Ismael Baguma.

The project has been in the making for nearly three decades, having been conceptualised in 1995.

The Energy and Petroleum Ministry however said it remains vital to address the challenges of loading refined petroleum products on trucks.

At the meeting, PS Liban recalled that in 2013, Kenya, Rwanda, and Uganda entered into a tripartite agreement to develop this pipeline under the NCIP framework.

During the inaugural Tripartite Infrastructure Summit, it was agreed that a common refined petroleum products pipeline was critical for serving the region’s energy needs.

Petroleum products are imported and discharged at the Port of Mombasa where it is transported by pipeline from Mombasa to the hinterland up to western Kenya.

The product is then loaded on trucks for distribution to the local markets in Kenya and the region including Uganda, Rwanda, South Sudan and the Democratic Republic of Congo by oil marketing companies.

The use of trucks is not ideal given its effects on the environment. Trucks are also prone to accidents and spillages.

“During the 14th Heads of States Summit in June 2018, it was decided that pending consultations on rescoping the Eldoret-Kampala-Kigali pipeline, partner States would prioritise developing Lake Victoria Intermodal Transport System,” said Liban.

This entailed the construction of oil jetties in Kisumu and Mahathi in Entebbe, Uganda, and the rehabilitation of ports to provide alternative and sustainable transport routes for transporting petroleum products.

“The continued collaboration among Kenya, Uganda, Rwanda and South Sudan illustrates the collective commitment to advancing NCIP initiatives and unlocking the region’s economic potential,” he added.

“In May 2024, the partner States revived the discussions on the EKK project. During the first inter-ministerial meeting on the pipeline held in Nairobi in July 2024, it was agreed that a Joint Steering Committee and a Joint Technical Committee (JTC) on the development of the Eldoret-Kampala-Kigali pipeline be formed.”

Mr Baguma reaffirmed his country’s steadfast dedication to the NCIP framework and its critical projects. “We fully recognise their potential to reduce petroleum transportation costs, stable fuel supply, and strengthen energy security. Rwanda stands ready to collaborate with partner States, contributing expertise and resources to overcome challenges and realise our shared goals,” he said.

During the meeting, the officials inaugurated the Joint Technical Committee (JTC), issued a Terms of Reference and mandated the JTC to manage the affairs of the project.

“The Joint Technical Team will be instrumental in the planning and execution of the project. They will re-validate the studies undertaken earlier to ensure they reflect current conditions and remain aligned with the long-term objectives of the project,” said Liban.

[email protected]