Uganda has protested over Kenya $40mn bond fee charged for direct importation of refined petroleum product.
The petrol product been charged were passed through the Kipeevu Oil Terminal at the Port of Mombasa.
Uganda got way to import petroleum products directly through the Uganda National Oil Company after lots of argument and protest.
UNOC first consignment without middlemen arrived at Monbasa early July, marking the start of new phase where Kenya only earns a transit fee.
According to Energy Minister Ruth Nankabirwa, the $40mn fee is too high and will lead to increased fuel prices for consumers as Uganda gets 90 percent of its petroleum through the Mombasa route.
“I am still in negotiations with the Kenyan government to make sure that they don’t force on us this kind of thing. The bond fee at VTTI in Mombasa, that is Vitol terminal in Mombasa where we are storing our products; 40 million dollars is a deterrent. And this is not how the East African Community spirit should operate,” Minister Nankabirwa said on Sunday.
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