Museveni Ends Fuel Deal With Kenyan Middlemen

Ugandan President Yoweri Museveni has ended the country's reliance on a fuel importation scheme involving Kenyan middlemen, characterizing the previous arrangement as a "monumental scam" that swindled Ugandan taxpayers. The shift follows a warning from a Kenyan senator who alerted Museveni that Uganda was purchasing petroleum through intermediaries, including Nigerian businessmen, rather than sourcing directly from refineries.

In response to this revelation, Museveni contacted then-Energy and Mineral Development Minister Irene Muloni to address the cost structure of imports. By 2023, the president backed a plan for the state-owned Uganda National Oil Company to take over petroleum imports. This transition began with a direct consignment in July 2024, which significantly reduced premiums for petrol, diesel, and aviation fuel.

While Uganda continues to utilize the Port of Mombasa and Kenyan pipeline infrastructure, the move removes approximately US$180 million in monthly purchases from Kenyan firms. Museveni's accusations have triggered political turmoil in Kenya, where opposition figures are using the dispute to attack President William Ruto's government-to-government fuel deal. While Ruto previously described the arrangement as the best deal for Kenya, critics now allege that Kenyan insiders profited at Uganda's expense.