Kenyan Royani Energy Limited Sues Uganda National Oil Company Over Fuel Importation Deal

A Kenyan company ,Royani Energy Limited and concerned Kenyan citizens Charles Kombo and John Kinuthia have sued Uganda National Oil Company (UNOC) challenging the Oil importation Certificate to import petroleum products through Kenya.

In their suit filed in a Kenyan Court, they insist that UNOC does not have Shs36bn turnover covering three years as required by the Kenyan authorities.

They also allege that UNOC has not sold 6.6 million litres of petroleum products and does not have the five retail stations and depots within Kenya to fulfil one of the conditions set by the Energy and Petroleum Regulatory Authority of Kenya for a license to be given to them.

They added that it was wrong for the Kenyan authorities to waive the said conditions so as to grant UNOC the license.

UNOC through the Ministry of Energy and Mineral Development applied for a license in Kenya to import Uganda’s petroleum products through Kenya and both countries agreed that UNOC opens offices in Nairobi Kenya which has since been done.

This after parliament passed the Petroleum Supply Act and assented to by President Yoweri Museveni . The law gives exclusive monopoly to UNOC as the sole importer of petroleum products in Uganda.

On behalf of the government of Uganda , Attorney General Kiryowa Kiwanuka signed an agreement with Vitol Bahrain to trade directly with UNOC without engaging middlemen who are accused of inflating the price of fuel coming into Uganda .

Oil dealers in Uganda have since protested that passing of the new oil law and have threatened to petition the Constitutional Court.

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