Kenya’s exports to Uganda are expected to grow significantly following the strengthening of relations between the two nations.
President William Ruto and his Ugandan counterpart Yoweri Museveni last week signed an agreement that will enable Uganda to transit petroleum products through Kenya in a major development that will boost trade between the two nations.
Kenya’s exports to Uganda in 2023 stood at Sh120 billion, having for the first time crossed the Sh100 billion mark.
The country’s main exports to her neighbour are petroleum products, manufactured goods and iron and steel.
Similarly, Kenya is the biggest export market for Uganda in the East African Community, with the latter recording Sh116 billion in 2023.
It is for this reason that the signing of the agreement comes as a major break in the trade relations that had thawed following a dispute over oil transit.
Uganda in December 2023 filed a case at the East African Court of Justice claiming the Kenyan government had restrained it from importing oil from Mombasa straining bilateral ties.
“We have just witnessed this agreement which enables the Uganda National Oil Company Ltd to import refined petroleum commodities directly from producer jurisdictions thus bringing to an end the challenges faced by the sector in Uganda,” President Ruto said.
Adding, “As leaders, we are committed to implementing all our obligations for our people and nations to reap the full benefits.”
According to him, seven other agreements had been signed in Kampala, which are expected to consolidate the strong relationship between the two countries and eliminate trade barriers.
Presidents Ruto and Museveni acknowledged the importance of extending the Standard Gauge Railway from Naivasha to Malaba and all the way to Kampala and DRC as an efficient and sustainable infrastructure for the transportation of goods and people.
“President Museveni and I appreciated the benefits and power of our close coordination with respect to the East African Community, Intergovernmental Authority on Development, the African Union and other regional organisations, which we recognise as the building blocks for the greater integration of our countries at the continental and international levels,” he said.
President Museveni said he had discussed with President Ruto important issues affecting the two nations and East Africa.
“The agreements we signed during my visit carry the weight of historical context, aligning with our long-awaited missions. Over 60 years ago, Africa gained independence, yet the true depth of our historical mission remained unexplored,” he said.
He emphasised the need for the two countries to eliminate barriers hindering the development of trade.
“We should eliminate barriers which hinder trade not only between Kenya and Uganda, but also East Africa and Africa as a whole,” he said.
Prime CS and Foreign Affairs minister Musalia Mudavadi said the two countries would foster a robust and unified East African Community that transcends economic and diplomatic ties. ■