Uganda sets tough terms for Kenya on oil pipeline

A worker at Ngamia 3 oil exploration site in Turkana County on July 13, 2014. FILE | BILLY MUTAI |

What you need to know:

Kenya guarantees it will, at all times, offer cheaper transit fees.

Uganda wants Kenya to provide security, agree on financing arrangements and start construction of the pipeline without delays.

As it currently stands, Kenya is straining as Uganda’s pre-conditions threaten to blow up the cost burdens of the pipeline.

Uganda agreed to take the Northern route to export her crude oil subject to three conditions. Among them is that Kenya guarantees it will, at all times, offer cheaper transit fees or tariff than all other possible routes.

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