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Plans are on course between Kenya and Uganda governments to establish a dry port in Uganda’s capital Kampala in a joint venture aimed at streamlining business operations for Uganda importers.

This follows a meeting between the Ugandan delegation of the Parliamentary Committee on Finance, Planning and Economic Development and Kenya Port Authority Managing Director William Ruto in Mombasa.

Speaking at the meeting, Capt Ruto said, under the plan, KPA will collaborate with Uganda to set up the facility to be named KPA-Uganda.

He expressed confidence the project will bolster trade infrastructure and simplify logistics for Uganda businesses.

“We want to make doing business easy for the Uganda importer such that if you have cargo, you just go and collect it from Kampala and then return your empty container there. As Members of Parliament that is something that I wish you can support so that we can make the movement of cargo from the Port of Mombasa to Uganda very seamless,” he said.

This comes in the wake of a bitter row over fuel supplies that recently erupted between Kenya and Uganda, with President Yoweri Museveni accusing Kenyan middlemen of inflating oil prices.

Cargo volume

Museveni said his country was being “cheated” by “parasites” and middlemen who have resulted in inflated fuel cost by up to 58 per cent, causing a “huge loss” for his country, a situation which has sparked jitters of frosty relations between the hitherto strong business partners.

For decades, Kenya has imported oil and sold it on to its East African neighbours—but its role as the main gateway for supplying fuel to the region is now at risk.

Ruto appreciated the significant role played by Uganda in terms of cargo volumes handled through the Port of Mombasa, saying with an annual cargo volume of approximately 35 million tons Uganda accounts for 25 per cent.

To facilitate smoother trade between Kenya and Uganda, he outlined to the MPs various measures being undertaken by the Kenya government including the directive by President William Ruto on removal of Non-Tariff Barriers along the Northern Corridor, which serves as a vital transportation route connecting the two countries.

“Our President was here the other day and he directed that all the roadblocks be removed. The police are supposed to provide escort and not to stop trucks along the corridor. He also gave direction that on weighbridges along the corridor, once you weigh your truck at the Port of Mombasa, the next weighing point is Malaba,” the MD added.

He updated the visiting MPs on the progress made in developing the Standard Gauge Railway (SGR) which currently extends from Mombasa to Naivasha saying there are plans by the Kenya government for the SGR to reach Malaba.

The KPA boss also acknowledged Uganda’s plans for constructing an SGR line from Malaba to Kampala, further enhancing connectivity and trade facilitation.

He lauded the Uganda government’s continued utilization of the rehabilitated Kisumu Port saying that a significant portion of oil products destined for Uganda are transported from Mombasa to Kisumu, where they are loaded onto ships for onward delivery to Kampala.

The delegation of the Uganda MPs led by Kungoza Emely commended KPA for the efforts in modernization of port facilities and automation of port services at the Port of Mombasa.