Kenyan officials have denied claims made by Uganda that Kenya imposed an extra fee on a recent oil shipment.

According to authorities in Kenya, Uganda owes additional charges for exceeding the agreed-upon cargo amount.

However, Uganda’s Energy Minister, Ruth Nakabirwa, alleged that Kenya’s Energy Ministry increased a fee on a Ugandan oil shipment that docked at Mombasa port earlier this month. She claimed this was an attempt to hinder Uganda’s oil imports.

Kenyan officials refuted the allegation, stating that the Energy Ministry has no authority to set such fees.

They explained that the Kenya Revenue Authority (KRA) determines fees based on the East Africa Customs Management Coordination Act.

Uganda also alleged that Kenya raised the warehousing bond to $45 million specifically to target Uganda’s oil shipment.

Kenya clarified that the bond fee applies only to the additional, undeclared cargo that Uganda brought in.

According to Kenya, Uganda imported 82,000 cubic metres of diesel, exceeding the approved amount of 65,000 cubic meters.

While Uganda claims the extra fees will increase fuel prices for Ugandan consumers, Kenya argues that the opposite is true. The higher costs stem from inefficiencies caused by Uganda’s import strategy.

Previously, Uganda received its oil share (around 22%) from eight monthly shipments for the entire region. This allowed Ugandan marketers to manage their finances efficiently.

The oil is procured by Vital Bahrain EC and shipped to Mombasa, where it’s discharged through the Kenya Pipeline Company network before being trucked to Uganda. VTTI, a private terminal handling Uganda’s consignment, sets its own tariffs, not the Kenyan government’s.