Kenyan oil dealers fear Uganda set to pick Tanzania’s Tanga port over Mombasa to handle fuel imports

By bne IntelliNews February 26, 2024

Kenyan oil dealers are reportedly in crisis mode as Uganda begins talks with Tanzania to import its fuel through the Tanga port rather than through Mombasa, following a spat with Nairobi.

Uganda had initially said it was negotiating with Tanzania to use the Dar es Salaam port to import its fuel after Kenya refused to give it concessions to use its pipeline.

But Kampala has decided to change tack, since the road from Dar es Salaam and Kampala is 1,715.6km, 49.5% longer that the distance between Mombasa and Kampala, Business Daily writes.

The shorter distance means that Uganda saves up to $35 per cubic metre for using Mombasa instead of Dar es Saalam.

“Kenyan State officials – as well as oil executives in both Kenya and Uganda – had earlier believed that Uganda was bluffing about shifting its import route to Tanzania,” the publication writes. “This is because, besides being cheaper, the Mombasa port is faster and more efficient than the Dar es Salaam port.”

The Tanga port is the one in East Africa and the second largest in Tanzania. While far smaller than the Dar es Salaam and Mombasa ports, Tanzania has been boosting its capacity to handle more cargo in recent years, Business Daily notes.

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