After agreeing to take the Northern route for the export of its crude oil, Uganda has set Kenya three conditions to abide by throughout their partnership.
Uganda has requested a constant lesser price of its transit fee or tariffs as opposed to the other routes, which Kenya has guaranteed. It is still unclear how the other route prices shall be determined for comparison.
Uganda also requires security from Kenya as the work advances, in addition to constructing the pipeline project without postponement.
Views on the conditions
It was noted that Kenya was uncomfortable with certain conditions that Uganda had set.
Irene Muloni, Uganda’s Energy Minister, stated: “It’s not like it was a misunderstanding, but rather they were uncomfortable with some of the terms. The issue of financing was premature before we agree on the structure of the project in terms of ownership.”
At present, Kenya is hesitant about Uganda’s proposed terms and conditions, as they could have the potential to detrimentally increase the cost of the pipeline, with Kenya having the burden of paying.
Read the article online at: https://www.worldpipelines.com/business-news/19082015/uganda-sets-conditions-for-kenya-pipeline-deal/