Four other countries have joined Uganda to protest against Kenya’s oil deal as G-G fuel deal effects takes full swing.
The countries who have been importing their oil through Kenya will now seek alternatives which will see Kenya lose Billions of shillings.
Uganda was the first country to make the move due to the Government To Government (G-G) deal with the oil rich countries. This has seen oil prices rise significantly and has been controversial thus receiving opposition from within and without.
The four countries are, Rwanda, Burundi, Democratic Republic of Congo and South Sudan. These countries are landlocked and depend on oil imports from kenya. They are said to be reconsidering their decision and weighing their options after the G-G fuel deal effects
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Additionally to the G-G fuel deal effects, the Finance Act 2023 led to high taxation on fuel thus making oil products expensive. The G-G deal just made matters worse than it already is for the countries.
Uganda that was importing 90% of its oil through kenya and the remaining 10% through Tanzania has signalled the change of import route to Tanzania. This means, Tanzania and Sudan might be the beneficiaries of the snub.
DRC using Uganda as her enroute of the fuel from Kenya will have to join Uganda to avoid conflict of interests. This is by going for a deal with Tanzania that will see Kenya lose a minimum of 15 Billion in revenue.
Kenya’s 40% of the total fuel imports go to the Democratic Republic of Congo and South Sudan. This in most cases is through Uganda. The decision to work with Tanzania will adversely affect Kenya both in the short and long run.
Although Sudan is currently under a conflict, the country has five major ports that can be used to import oil for South Sudan. Alternatively, the country will join Uganda and DRC to get oil from Tanzania.