Uganda, Kenya hold talks on oil

Jan 12, 2006

UGANDA and Kenya energy ministry officials have held crisis talks in Eldoret town over restrictions by the Kenya Revenue Authority (KRA) and the Kenya Pipeline Company (KPC) that had affected oil supplies to the landlocked country.

By Reuben Olita
UGANDA and Kenya energy ministry officials have held crisis talks in Eldoret town over restrictions by the Kenya Revenue Authority (KRA) and the Kenya Pipeline Company (KPC) that had affected oil supplies to the landlocked country.
The permanent secretary in Uganda’s energy ministry, Fred Kabagambe-Kaliisa, said KRA’s demand for cash payment would limit working capital of Ugandan oil importers.
He said, “We require five million litres a day to sustain the rising demand of the product but due to restrictions by KRA and KPC, we receive only 1.8.”
Kabagambe said KPC’s failure to allow exporters access fuel in its Nairobi and Nakuru depots had also affected supply.
His Kenyan counterpart, Patrick Nyoike, said the complaints would be addressed urgently. “Our main concern was to ensure uninterrupted flow of fuel supply to Uganda,” he said.
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