President Museveni Clarifies Remarks on Uganda's Fuel Procurement Deal

Nairobi — Ugandan President Yoweri Museveni has clarified remarks that triggered a fresh debate over petroleum imports between Kenya and Uganda, saying sections of the Kenyan media misrepresented what he said about the use of middlemen in fuel procurement. Museveni said his original remarks were about Uganda's previous petroleum procurement system and not an accusation against the current Kenyan government. In a statement issued as part of his 82nd birthday reflections, Museveni said he had been referring to a procurement arrangement in which Uganda was buying petroleum products through intermediaries in Kenya. He said the matter was brought to his attention around 2019 by the late Kenyan politician and former Senator Cyrus Jirongo. Keep up with the latest headlines on WhatsApp | LinkedIn According to Museveni, Jirongo informed him that Uganda was purchasing petroleum products through Kenyan middlemen, prompting him to ask then Energy Minister Irene Muloni to address the issue. "Some Kenya Media People decided, recently, to put pilipili (red pepper) in what I said recently," Museveni said, arguing that his remarks had been given a misleading interpretation. Museveni said Uganda eventually changed its petroleum procurement model in 2023 after entering into an arrangement with Vitol, which he described as a global energy trader with refineries and bulk-supply capabilities. He said the new arrangement resulted in significant reductions in the premiums Uganda paid for petroleum products. Under an agreement dated August 18, 2023, Museveni said Uganda's diesel premium fell from US$118 to US$83 per metric tonne. The petrol premium dropped from US$97.50 to US$61.50 per metric tonne, while aviation fuel declined from US$114.25 to US$79.25 per metric tonne. Museveni said the changes were part of Uganda's efforts to reform how the country procured petroleum products and reduce the cost of importing fuel. The Ugandan President specifically credited President William Ruto with supporting the new arrangement despite resistance from some actors in Kenya. Museveni said Ruto's intervention helped Uganda secure access to Kenya's petroleum infrastructure, allowing the country to transport its imported fuel through the Kenya oil pipeline. "I want to thank H.E. Ruto because he prevailed over some actors in Kenya who were trying to resist," Museveni said. He added that Uganda was subsequently allowed to pump its petroleum products through the Kenyan pipeline, in which Uganda holds a 20.15 per cent shareholding. "We are very happy with the Kenyan Government of President Ruto on this matter," Museveni said. The arrangement has allowed Uganda to continue using Kenya's infrastructure even as it changes the way it sources petroleum products. Museveni said Uganda's previous procurement model involved buying petroleum products through middlemen in Kenya. He said he only became aware of the arrangement after Jirongo raised the issue around 2019. The President said his government attempted to address the matter at the time but that significant changes were not made until the 2023 arrangement with Vitol. Uganda subsequently moved towards direct procurement from bulk suppliers, with the new model reducing the premiums attached to imported petroleum products, according to Museveni's account. The development has renewed attention on the role of intermediaries in regional petroleum supply chains and the cost of importing refined fuel through East African ports and infrastructure. Museveni's earlier comments had triggered renewed scrutiny of Kenya's Government-to-Government (G-to-G) petroleum import arrangement. The Kenyan government has defended the G-to-G framework, saying it was introduced in 2023 primarily to address a severe shortage of US dollars that threatened fuel supplies and other critical imports. Energy and Petroleum Cabinet Secretary Opiyo Wandayi said Kenya was facing a petroleum supply crisis in 2022, when oil marketing companies were requir