Uganda has been dissatisfied with the longstanding system under which its fuel companies buy 90 percent of their supplies through affiliated firms in Kenya. President Yoweri Museveni has complained this exposes his country to supply disruptions and high pump prices.
In response, Uganda announced in November it would hand over exclusive rights for supply of all petroleum products to a unit of global energy trader Vitol.
The East African nation imported $1.6 billion worth of petroleum products in 2022, mostly originating from the Gulf.
Museveni’s government planned for imports to still arrive via Kenya, but Energy Minister Ruth Nankabirwa said the Kenyan government refused to grant the required license.
"We are negotiating with the Tanzanian government. The technical teams are talking, and I will be meeting Her Excellency, the president on that," Nankabirwa said, adding, "we want to find a route that will keep us safe in terms of petroleum supplies."
Kenya's Energy and Petroleum Regulatory Authority and Tanzanian officials did not immediately respond to a request for comment.