NAIROBI — In a setback to Uganda’s efforts to secure affordable fuel imports, a dispute has emerged over bond fees at Kenya’s port of Mombasa.
Just hours after the arrival of Uganda National Oil Company’s (Unoc) first batch of petroleum products, Kenya imposed additional charges amounting to millions of dollars.
The confusion began when conflicting reports from Ugandan officials regarding the volume of the fuel shipment raised suspicions among Kenyan authorities.
This discrepancy, highlighted by discrepancies in shipping documents, led Kenya’s Cabinet Secretary for Energy, Davis Chirchir, to instruct the Kenya Revenue Authority to levy a $40 million bond fee on Vitol’s storage facility.
This fee marked a staggering increase of $25 million due to an alleged underdeclaration of 17,000 cubic meters of diesel.
A recent report by the Business Daily further indicated that shipping documents suggested Unoc’s fuel cargo exceeded declared amounts, casting doubt on Kampala’s strategy for direct fuel imports.
Tony Otoa, Unoc’s chief corporate affairs officer, countered these claims, insisting that all 80,000 metric tons of diesel were accurately declared.
The developments underscore the challenges facing Uganda as it seeks to establish a reliable and cost-effective fuel supply chain through Kenya.
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