Economy

Kenya keenly following Uganda crude pipeline events: minister

Kenya will go ahead with its own infrastructure plans if Uganda and Tanzania agree on a proposal to abandon the Lamu crude pipeline route for the Tanga (Tanzania) option, acting Transport Cabinet Secretary Mr James Macharia said Wednesday.

Mr Macharia said that while Kenya is “keenly keeping a close watch on the unfolding events in Uganda”, it will go ahead with its own infrastructural plans undeterred.

“We are going according to our own plans. Nothing has changed.”

Last month it emerged that Kenya’s prospects of a crude oil pipeline through Hoima-Lokichar-Lamu could be crushed after Uganda signed an agreement with Tanzania to explore the Tanga route.

Uganda, Tanzania and Total E&P Uganda signed a memorandum of understanding (MoU) outlining new pipeline arrangements.

The MoU also invited other interested parties such as Kenya to assess and develop the Tanga route, creating a base for developing a crude export pipeline from Hoima to Tanzania's Tanga port.

READ: New oil pipeline deal shifts focus from Lamu port

Major blow

If Uganda goes ahead to construct the pipeline through Tanzania, it will deal a major blow to Kenya’s Lamu Port-South Sudan-Ethiopia Transport corridor (Lapsset) project.

“We are simply evaluating the least-cost pipeline route to the East African coast, our plans focus on ensuring our crude oil has value,” Uganda’s ministry of energy and mineral development permanent secretary Fred Kabagambe-Kaliisa was quoted as saying in the media.

But in Nairobi, Mr Macharia, said while Kenya was keenly awaiting the decision from further planned talks by both Presidents Uhuru and Museveni on the way forward, Kenya’s plans would not be derailed.

Also read: Total says Kenya security important in Uganda oil pipeline route

“In the last summit which was a few weeks ago, the matter was discussed and it was decided that the heads of States (Mr Uhuru and Mr Museveni) would hold bilateral talks and chart the way forward. Either way we are looking into options which will protect our national interests. There is no cause for concern,” said the CS.