Author: Agencies

The government has released Sh13.5 billion for the implementation of the   second phase of the Collective Bargaining Agreement starting July 1, 2024.

The Teachers Service Commission (TSC) boss Nancy Macharia revealed that the government released the funds following strategic talks held by the Commission and the teachers unions as directed by President Wiliam Ruto.

This is after the Teachers Unions including Kenya Union of Post Primary Education Teachers (KUPPET), The Kenya National Union of Teachers (KNUT) and Kenya Union of Special Needs Education Teachers (KUSNET) issued strike notices demanding for the full implementation of the 2021-2025 CBA agreement.

“After today’s discussions, the Commission is pleased to announce that the government has provided funds for the implementation of the 2nd phase of the CBA with effect from 1st July 2024,” she revelaed.

Macharia therefore directed the teachers unions to withdraw their strike notices to avoid disruption of learning activities as schools set to re -open for third term next week.

“We therefore beseeching all our teachers to report to schools on Monday for the start of the Third Term now that the Government has released funds,” she urged.

Macharia stated that the during the discussions with the teacher unions  the Commission further resolved  to review the career progression guidelines to ensure interns teachers have been on-boarded to the permanent and Pensionable contract terms .

“Other issues that the trade unions had issues but have been resolved by the commission include the review of the career progression guidelines which is ongoing, Teachers can now access both public and private hospitals under the Teachers Medical Scheme,” she said.

The TSC Boss noted that the government has provided resources for retooling of teachers for the implementation of the Competency-Based Curriculum (CBC) where the Commission has promoted 51,232 teachers under competitive promotions and a further 20,000 annually on common cadre.

On June 16 2024 President Ruto ordered TSC to hold talks with the teachers unions to resolve the challenges affecting the welfare of public school tutors across the country.

A House team has commenced a probe into how the Central Bank of Kenya (CBK) awarded a Sh14.2 billion-contract for the replenishing of worn out Kenya shilling notes to a German firm.

Yesterday it emerged that CBK had entered into a multi-billion-shilling contract with Giesecke + Devrient Currency Technologies for the printing and replenishing of bank notes for a five-year period.

Central Bank Governor Kamau Thugge, while appearing before the National Assembly Finance and National Planning Committee yesterday, said that the government had resorted to the measure following the exit of De La Rue.

Thugge disclosed that under the new contract, the foreign firm was to print and replenish 460 million pieces of Sh1,000 notes and 170 million pieces of Sh500 notes.

For the Sh200 notes, it is expected to avail 260 million pieces and a further 690 million pieces for the Sh100 notes. It is also expected to deliver 460 million pieces of Sh50 bank notes for the contractual period.

The Molo MP Kimani Kuria-led committee heard that the firm had already delivered on the replenishment of part of the Sh1,000 notes as of August this year with more to be introduced in a few months’ times.

“Following the exit of De La Rue, the country was at risk of stockout of bank notes, with grave economic and national security implications… we knew the country needed this stock up process and that’s why we went through all legal processes in the tendering process,” submitted Thugge.

“I would also want to clarify that the firm is not printing new currency but replenishing the existing ones that are old and worn out,” he added.

Things, however, turned murky after the committee learnt that the company had been single sourced by the CBK as opposed to going through an open tender system.

“Who really owns this company? How did we settle on it? How many other jobs have they done? What was the real reason it was contracted?” questioned Eldas MP Adan Keynan. “We will need you to furnish this committee with will the documentation relating to the new contract including a justification of the closure of De La Rue.”

Cost of the contract

The MPs further sought to know whether there was value for money and further poked holes into the sudden exit of banknote printing firm De La Rue- the firm contracted for the printing of new currency in 2019.

“When you handpick a firm, how do you ascertain the cost of the contract? Also, on printing of these notes, will the existing ones continue being legal tender?” committee chair Kimani posed.

He also sought an explanation from the Governor and his team on how it was possible for the current contract to cost Kenyans Sh14.2 billion for the production of 2.04 billion notes while it cost Kenyans $3 million more for the production of 2.35 billion bank notes in various denominations for the contract entered into with De La Rue in 2019.

“This committee needs to understand what is the firms’ scope of work…also, how can it be that this contract is USD 3 million cheaper than the one we got into with De la Rue in 2019? It shows there was certainly a big rip off with our previous contract and it’s something that should be interrogated,” emphasized the chair. Baringo MP Joseph Makilap querried the exact number of notes that had been worn out to the extent that CBK needed Sh14.2 billion to replenish them.

In his defense, Thugge submitted that the issuance of contract to Giesecke + Devrient Currency Technologies had been greenlighted by the highest security and constitutional organs on the land including the National Security Council and the office of the Attorney General.

“We will avail the documents. We have nothing to hide. We applied for the Classified procurement process through Treasury, which then went to the National Security Council, later the Cabinet which analysed and issued a directive to Treasury that we (CBK) proceed with procurement,” Thugge said.

Eight police officers in Kenya have been suspended on suspicion of helping a suspected serial killer escape from custody, police have said.

In July police said Collins Jumaisi Khalusha had confessed to the murders of 42 women, including his wife, since 2022.

Mr Khalusha’s lawyer denied the claim, saying his client had been tortured to confess.

He had been held at a police station since being arrested in July, but on Tuesday police said that Mr Khalusha and 12 others escaped after being “aided by insiders”.

An incident report from the station says police discovered the detainees were missing Tuesday morning when officers were serving breakfast.

The 13 individuals escaped by cutting through a wire mesh roof and scaling a perimeter wall, the report added.

The 12 individuals who fled alongside Mr Khalusha were Eritrean nationals detained for entering the country illegally, police said.

Eight officers on duty at the time have been suspended, while investigations continued, police added.

Mr Khalusha, 33, was detained following the discovery of nine mutilated bodies at an abandoned quarry in the capital, Nairobi.

The victims were aged between 18 and 30 and were all killed in the same way, according to the police.

Their murders sparked shock and outrage. Many questioned how officers failed to detect that bodies were being left in a quarry around 100m (109 yards) from a police station.

They also wondered how 42 people could be murdered in the space of two years without police noticing – and how, after not suspecting anything for so long, officers made an arrest in less than three days after the bodies were discovered in the quarry.

Kenya’s police watchdog also expressed some scepticism. The Independent Police Oversight Authority launched an investigation to establish whether the police themselves were linked to the killings, following “widespread allegations of police involvement in unlawful arrests [and] abductions”.

It has not yet released its findings.

Police in Kenya have been accused of scores of human rights abuses in the past – and the force is currently under investigation over deaths and abductions following recent anti-government protests.

At the time of Mr Khalusha’s arrest, Directorate of Criminal Investigations (DCI) chief Mohamed Amin said: “It is crystallising that we are dealing with a serial killer, a psychopathic serial killer who has no respect for human life, who has no respect and dignity.”

Mr Khalusha’s lawyer, John Maina Ndegwa, told the BBC in July: “He says he was strangled to confess. You could tell he was in distress, terrified and in anguish.”

The suspect appeared in a court in Nairobi on Friday, when the magistrate ordered him to be held for a further 30 days so that police could complete their investigations, news agency AFP reported.

The discovery of the dismembered bodies came as the country was still shaken from the so-called Shakahola forest massacre, where more than 400 bodies were found in mass graves near the Indian Ocean coast.

Cult leader Paul Mackenzie had allegedly encouraged his followers to starve themselves in order to “go see Jesus”.

He has pleaded not guilty to manslaughter.

The National Assembly Public Accounts Committee (PAC) has initiated an investigation into the circumstances under which the Energy Ministry received an additional Ksh 290 million from the National Treasury for a donor-funded project.

An audit by the Office of the Auditor General flagged the extra budget after it emerged that while the State Department for Energy budgeted for Ksh 90 million, it received Ksh 378 million, an over-funding of Ksh 288 million.

In the query, Auditor General Nancy Gathungu cast doubt on management’s explanation that the over-funding was as a result of the project erroneously receiving funds meant for another entity.

Members of the Public Accounts Committee (PAC) while examining the accounts for the State Department for Energy for the financial year ended June 30th, 2022, termed the transaction suspect.

The committee in a session chaired by PAC vice chairperson Tindi Mwale (Butere MP) questioned Energy PS Alex Wachira about the error and whether it is a common occurrence in government transactions.

“You said you erroneously got Ksh 288 million. How did the generous error arise? Which other entity is involved?” Rarieda MP Otiende Amolo, a member of the committee, asked.

PS Wachira was in pain to explain the “genuine error” even as the State Department responses seemed inadequate and unsatisfactory after it emerged that its written response made no reference to the extra amounts.

“You could have attached evidence to explain this further. The question we are asking is; did it go back to the sender or did it disappear from the Treasury?” Soy MP David Kiplagat asked.

MPs took issue with the department for glossing over the matter and pushed to be furnished with the agreements signed between the Treasury and the World Bank on the same.

Kibwezi West MP Mwengi Mutuse said, “It would be helpful to provide the financial agreement to determine the terms.”

The committee is also probing why the provided funds (the Ksh 90 million) was also not spent fully as envisaged.

Auditors queried the under absorption after it emerged that out of the Ksh 90 million, only 50pc was absorbed.

The ministry explained that the under-absorption was as a result of complexities in the procurement process.

However, PS Wachira said the project in question is now complete and that the funds were returned to the National Treasury.

He said the procurement procedures were undertaken using the World Bank guidelines.

“The guidelines required that we get clearance at every stage. An approval at one stage would then define what to be done next.”

But MP Otiende said the response was not congruent with the written explanation.

“If it is about the delay not just say complexity of procurement. This would invite a further explanation. The written explanation doesn’t have that detail,” Hon. Amolo said.

Treasury officials at the meeting said the cases of erroneous overfunding were not common.

“We intend to believe it is erroneous,” said CPA Lawrence Kwiriga Kimathi, a senior Principal accountant at the National Treasury.

The hearing of a case in which an advocate is charged alongside another with Sh 134 million gold fraud has been pushed to September.

Principal Magistrate Rose Ndombi set the case Nicholas Otieno Ndolo and lawyer Thomas Otieno Ngoe for hearing on 24th September 2024

The duo is charged with defrauding a foreigner USD 1 million (approx. Sh134 million) for shipping of gold to Dubai.

According to the charge sheet, Ndolo and Ngoe are accused of obtaining USD 1 million from Seth Adam Bernstein on 11th February 2024 in Nairobi.

The two allegedly obtained the money by pretending that DSI Mining and Minerals Company Limited was in a position to pay custom duties for 3000 kilograms of gold to be shipped from Kenya to Dubai.

Ndolo is also facing a charge of making a mineral export permit Reference No.EAC/22/92709141708/2022 dated 16th May 2022 with intent to defraud.

The two denied the charges and were released on a cash bail of Sh 1 million each.

A famous city director of a company was on Friday charged with stealing over Sh 100 million from HKR Enterprises Limited after using deceiptive and dubious means

Ramesh Jadva Varsani was charged before Milimani Senior Principal Magistrate Rose Ndombi where he denied the charges.

The court heard that the accused person stole Sh 106,689,960 from HKR Enterprises on diverse dates between January and December 2022.

The money is believed to have come into his possession by virtue of his employment as the director of HKR Enterprises.

He was released on a Sh 10 million bond with an alternative cash bail of Sh 5 million.

Imenti House proprietors have denied selling the iconic building located in Nairobi City’s central business district.

Speculation was rife that the building owned by Meru Central Coffee Cooperative Union (MCCCU) has been sold after about 200 tenants were evicted from Imenti House on Thursday.

MCCCU chief executive officer Duncan Marete said the building is still owned by the coffee union, which was acting against an anchor tenant who has failed to pay rent for several years.

“We have had a problematic anchor tenant who has not been paying the union for several years. The tenant known as Shariff Mohamed owes the union Sh5.8 million. We got an order to have him auctioned and this is why the tenants who were under him have been affected,” Mr Marete said.

A court order issued by Principal Magistrate Becky Cheloti of Milimani Commercial Court, Shariff Mohamed, General Tech Sol Agency, Hamza Mohamed Hajo, Mohamed Abdullahi Hajo, Galgalo Jattani and Liflo Electronics are listed as the affected tenants.

Last month, Milimani Principal Magistrate Sammy Opande dismissed an application by Shariff Mohamed, Hamza Mohamed, Mohamed Abdullahi and Galgalo Jattani seeking to have MCCCU barred from interfering with their occupation of shops in Imenti House.

In his ruling, the Magistrate directed both parties to “have a sit down and agree on the issue of rent account status, through their advocates.”

On Thursday, August 15, morning, tenants who have been operating stalls in the building took to social media to protest what they termed as a two-hour notice to vacate the premises.

“The tenant has been collecting rent but has not paid the union for several years. We had to seek the intervention of the court to recover our arrears,” the CEO said.

Mr Marete dismissed claims that the building has been sold saying the union does not intend to sell the prime property.

MCCCU, then Meru Central Farmers’ Cooperative Union (MCFCU) acquired Imenti House in 1975 at a cost of Sh9 million through a loan offered by Cooperative Bank.

The union had in the past announced plans to upgrade Imenti House into a 25-storey building in efforts to enhance its income.

According to MCCCU chairman Ephantus Majau, the union earns more than Sh8 million every month from the property.

Eyebrows have been raised on how imported refined edible palm oil disguised as crude palm oil entered the port of Mombasa in a bid to evade taxes.

The country is estimated to have lost Sh62 billion in revenue tax for the last three years as the importation of the product largely from Malaysia and Indonesia gained entry at the Mombasa Port.

The imported refined oil was intended for use in the East African Community (EAC) countries of Kenya, Uganda, Tanzania and Rwanda.

Imported refined palm oil is charged 35 percent duty while semi refined palm oil attracting 10 percent duty.

The product also attracts Import Declaration Fee (IDF) at the rate of 2.5 percent, Railway Development Levy of 1.5 percent and Value Added Tax (VAT) 16 percent.

Documents before parliament show that the product imported by Louis Dreyfus Company (LDC) was a blending of 60 percent crude palm oil with refined palm oil of 40 percent which is then declared as crude palm oil.

In 2022 the government lost Sh16.5 billion in revenue from the 233,000 metric tonnes that were misdeclared as crude palm oil and Sh32.54 billion in 2023 from the 387,868 metric tonnes misdeclared.

In 2024 the government has already lost Sh13.83 billion in revenue from the 163,567 metric tonnes imported so far.

“They load both cargos into the same ship tanks using a 40 percent refined oil blend and 60 percent crude oil blend. This is against the World Customs Organization guidelines as any adulterated cargo cannot be deemed as crude oil palm oil,” the documents read.

Details have emerged that LDC that has no contacts on its website and the available telephone numbers could not go through is among the entities. Most firms misdeclare refined edible palm oil to evade paying the required taxes to the taxman.

“The product at the destination country requires less processing or none at all thus their customers save on processing costs,” the documents read.

The palm oil cargo imported from Malaysia and Indonesia, the world’s two leading exporters of palm oil products that accounts for 85 percent of the production, is in six types- RBD Palm Olein, RBD palm stearin, crude palm kernel oil, crude palm olein, crude palm oil and palm fatty acid distillate.

Palm oil stearin is a by-product of palm oil refining as is used in soaps manufacture and cooking fats. RBD Palm Olein is the refined palm oil, Crude palm kernel oil is by-product that is used in soap manufacturing.

Crude palm olein is palm oil that has been semi processed, which means that it has only been fractioned to separate the liquid portion from the solid portion of oil and attracts import duty at the rate of 10 percent.

Crude palm oil is unprocessed oil which requires full processing. Palm fatty acid distillate is a by-product of palm oil refining and is used to make brown soaps.

This means that were the product to be imported in crude form, the country would benefit as the by-products from the refined oil would help the soap manufacturing among others.

To promote local value addition, Indonesia and Malaysia have imposed a $70 per ton of Crude Palm Oil exports with no export duty on refined palm oil.

This means that the importers of the product save the $70 per ton duty when exporting refined palm oil from Indonesia or Malaysia and 35 percent import duty when declaring the cargo as crude palm oil in Kenya.

Because the oil is blended the local processing costs are reduced as such the companies stand to benefit more as the government losses.

President William Ruto’s government has explained the new university funding model that has been a subject of massive reactions among Kenyans in the past few days.

Higher Education Principal Secretary Beatrice Inyangala Friday revealed that the new funding model is grouped into five bands depending on the family’s income level.

At the same time, the PS  outlined the breakdown of the amount each band will receive as a scholarship and loan.

The band any student belongs to depends on the amount the applicant placed as family income while applying for a scholarship.

Band One, the most needy group, consists of a family whose income is not beyond Sh5,995.

Under this category, the government scholarship will cover 70 per cent of the fees while the loan will cover 25 per cent, making the total support 95  per cent.  Under the category, the family will pay 5 per cent of the fees and the student will receive an upkeep loan from Helb of Sh60,000.

In Band Two, the government has grouped families whose income does not surpass Sh23,670 but is above Sh5,995.

In this category, the government scholarship will cover 60 per cent while the loan will cover 30 per cent.

The family will pay 10 per cent of the fees. Under this category, the student will receive an upkeep loan of Sh55,000.

In Band Three, the government has classified families whose family income does not pass Sh70,000 but it is above Sh23,670.

In this category, the government scholarship will cover 50 per cent, while the loan will cover 30 per cent.

The family will contribute 20 per cent of the fees supposed to be paid. Students in the category will receive an upkeep loan of Sh50,000.

In Band Four, the government has grouped families whose income does not exceed Sh120,000 but is above Sh70,000.

In this group, the government scholarship will cover 40 per cent while the loan will cover 30 per cent.

The family will pay  30 per cent of the fees.

In Band 5, the government has grouped families which earn more than Sh120,000.

In this category, families will pay 30 per cent of fees.

They will receive 30 per cent of the fees as a loan while their families will be required to pay 40 per cent of the fees.

Education CS Julius Ogamba on Friday said that students not satisfied with the bands they have been placed in can appeal at the Higher Education Portal.

Social media enthusiast Scorphine Maverick Aoko Otieno was Friday arrested and detained over several posts she made online.

Aoko was picked up from her house in the city by police who took her to the Directorate of Criminal Investigations for grilling.

This followed several complaints lodged with the police over her posts, her lawyer said without elaborating.

Lawyer Cliff Ombeta had earlier claimed she had been denied the opportunity to talk to her lawyer.

He however said later on police allowed a lawyer to talk to her over the issue.

“..they have finally allowed my colleague to see her. I have also spoken to her. Thanks, Ivy  Atekofor attending Aoko Otieno at least we now know she is ok,” he said.

Ombeta did not explain why she had been arrested.

But police said she had been detained ahead of arraignment over several undisclosed reasons.

Some of the posts she had made on her social media X account were deleted.

It is not clear who did it.

She has of late touched on many people in her posts some of who are in power.

Her handler said she was taken into custody and denied cash bail.

“This is Aoko’s  Aide. She was arrested this morning  & has been detained. They have also denied her legal counsel,” said a post from her X account.

Embakasi East Member of Parliament Babu Owino said Aoko was detained at Muthaiga police cells ahead of planned arraignment.

“I went to see Aoko Otieno today (Friday) at @DCI_Kenya headquarters. The charge on her is vexatious, frivolous, fickle and limping,” he said in a post.

“She’s being held at Muthaiga Police Station.”

The news spread online with some users propelling the #FreeAoko hashtag to have her released.

Police said she would be charged in court and that there was a valid complaint.

A Nairobi school has been ordered to pay a student Sh250,000 compensation for expelling her over alleged lesbianism claims.

Justice Lawrence Mugambi, in his judgment, found that St Hannahs Girls High School failed to give the student codenamed AWW, a fair hearing before kicking her out.

The Judge said the girl still bears the pain of being accused of lesbianism but could not either face her accusers or be given a chance to respond to the allegations.

“The respondent’s arbitrary action after making serious allegations against AWW and eventually expelling her without allowing her to defend herself against the grave allegations that touched on her dignity was out rightly unfair and because the truth may forever remain unknown,” he said

The school defended its decision to expel the girl on Christian grounds. The institution alleged that AWW was bound to follow its values and rules, including not being involved in inappropriate acts.

In her case, the girl who sued the school through her mother, codenamed FW, said she was suspended without being given an explanation.

FW said that on May 29, 2023, the school’s principal called her on the phone and notified her of the suspension. The girl was picked up from school by her brother. The court heard that the school later explained that she was engaging in ‘unorthodox’ acts.

The teen’s mother said that St Hannah’s management was silent despite numerous follow-ups. On June 5, 2023, the school summoned AWW, and seven days later, it officially communicated to her that she had been expelled.

FW said, the principal told her on June 5 that there was no evidence to implicate her child and the suspension was too harsh and did not match the disciplinary issue.

FW argued that no disciplinary committee was formed to hear the minor’s case, and there was no documentation to support the allegations. She argued that the school management was the accuser, the jury, and the judge.

The school called Violet Ndehi as its witness. While denying any wrongdoing, the school said that AWW was sent home following an inappropriate act with another student, who was identified as SN.

Ndehi further claimed that statements from the implicated students were tabled in the meeting with the minor’s parent, and two teachers who reported the incident were summoned to testify.

She asserted that AWW and SN were caught in bed. Ndehi alleged that the two students were in a relationship for two years.

She claimed other students witnessed the two engaging in inappropriate acts and were hugging in bed. At the same time, Ndehi alleged that AWW and SN would kiss in the evening and sometimes in the morning.

She claimed that the teens would sometimes wait for everyone to leave the dormitory before making out.

Ndehi said the principal investigated the matter and the board unanimously agreed that the two students should leave.

Rachel Njoki was also the school’s witness. Njoki claimed that two teachers- Clare and Elizabeth reported the two students. When interrogated, AWW and SN denied engaging in inappropriate acts.

Njoki said the decision to kick out the two was to protect the school and the other students from indiscipline.

But FW argued that there needed to be meeting minutes or communication about a board that met.

She said that the school had violated the basic  education regulations, which require a principal to issue a written letter explaining the reason for suspension or expulsion.

FW told court that the school had no best interest for the minor as it opted to kick her out instead of considering her right to education.

Supply chain and procurement managers in public offices must make it scary to engage in malpractices to deter the vice, Prime CS Musalia Mudavadi has said.

Mudavadi on Thursday said Kenya loses about Sh608 billion, or 7.8 per cent of the GDP, annually to corruption, according to the Ethics and Anti-Corruption Commission.

Globally, about USD2.6 trillion (about Sh338 trillion) is lost to corruption, which is about five per cent of the world’s GDP.

“Kenya is ranked 126 out of 180 countries in the 2023 Transparency International Global Corruption Index,” he said.

The PCS said it is sad that perpetrators of corruption find it easier to engage in illegalities with government-funded projects than donor-funded ones.

“In other words, we respect and fear foreigners more than we respect our own people,” Mudavadi said.

He spoke at the heads of the Supply Chain and procurement forum 2024 in Mombasa on Thursday.

“You must create fear in the discharge of irregularities in our procurement processes,” he told the 320 heads of supply chain and procurement who attended the forum.

He called on the managers to avoid being influenced by political forces in the discharge of their duties, saying if something goes wrong, they are the ones who will be sacrificed.

In the discharge of their duties, the managers should distinguish between personal, sectarian, political and national interests, the PCS said.

“Protect your profession from political influence that has led to awards being made based on political considerations rather than on merit.

“You must fight back ‘the call from above’ being used to influence your decisions and remain steadfast in your compliance to procurement regulations and procedures,” Mudavadi said.

Kenya Institute of Supplies Management chair John Karani said they are working with the Judiciary to ensure their members are not victimized when things go wrong.

He said KISM has the capacity to investigate professional conduct and work with modalities to avoid court action where necessary.

Karani said there is a need to develop and improve tools that guard against corruption.

“We need to have standards across the board so that people do not buy the same pen at different prices. If a pen costs Sh100, it should range within that Sh100 and not have somewhere that the pen costs Sh1,000,” Karani said.

He however acknowledged that the corruption monster has been a thorn in the flesh for the supply chain and procurement departments.

Karani said digitisation of the processes will go a long way to minimizing or probably eradicating corruption.

“The Electronic Government Procurement System is a sure way of ensuring no money is lost in the process of procuring equipment,” he said.

The Uganda National Oil Company (UNOC) has begun shipping oil products through the Port of Dar es Salaam.

Previously, UNOC utilised the Port of Mombasa in Kenya and relied on the Kenya Pipeline Company (KPC) for transportation.

According to a statement signed by UNOC’s chief executive officer, Ms Proscovia Nabbanja, “Uganda plans to transport approximately 36 million litres of oil each month—equivalent to 1,028 truckloads—through the Port of Dar es Salaam.” UNOC anticipates that this volume will increase over time.

The first shipment of 18 million litres (520 truckloads) has begun loading in Dar es Salaam and is expected to arrive in Kampala in the coming days.

The agreement between the Dar es Salaam Port and UNOC was established from May 24 to May 25, 2024, during the Second Business Forum held in Dar es Salaam.

During the forum, the two countries agreed to enhance oil and other product transportation routes through Dar es Salaam instead of Mombasa.

This decision was prompted by technical and cost issues associated with using the Mombasa port, leading Uganda to seek Dar es Salaam as an alternative.

Tanzania’s Deputy Prime Minister and Minister of Energy, Dr Doto Biteko, emphasized that the agreements aimed to strengthen economic relations, particularly in the energy and industrial sectors.

“This meeting aimed to enhance infrastructure and foster cooperation in trade and industry,” Dr Biteko said.

Earlier this year, Uganda began negotiations with Tanzania to use the Dar es Salaam Port for its oil imports, intending to end reliance on Kenya’s Mombasa port.

Uganda’s dissatisfaction with the current system, where Ugandan fuel companies acquire 90 percent of their supplies through affiliated firms in Kenya, led to this decision.

President Yoweri Museveni expressed concerns about supply disruptions and high fuel prices.

In response, Uganda announced in November 2023, that it would transfer exclusive rights for petroleum supply to a unit of global energy trader Vitol.

Uganda imported approximately $1.6 billion worth of petroleum products in 2022, most of which came from the Gulf region.

Although Uganda initially planned to continue imports through Kenya, Energy Minister Ruth Nankabirwa reported that the Kenyan government refused to grant the necessary license.

“We are negotiating with the Tanzanian government, and I will meet with Her Excellency, the President, on this matter,” Nankabirwa stated earlier this year.

“We want to find a route that ensures the security of our petroleum supplies.”