Museveni Chooses Tanzania Over Kenya for Lucrative oil Deal.

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Chrispen

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Sunday, April 11 2021 -President Yoweri Museveni and his Tanzanian counterpart Samia Suluhu have finally signed an oil deal at the cost of sh 400 billion.

The deal which was initially meant to go through Kenya was finally redirected to Tanzania despite Kenya being the most appropriate route .

However, it has emerged that Ugandan government raised concerns about the Kenyans cartels and brokers who can’t allow an investor without cutting expensive deals.

The agreement to build Uganda’s oil pipeline through Tanzania was finally sealed on Sunday April 11 when Suluhu toured Uganda in her first ever trip outside her country since her rise to power.

It has been revealed that Museveni’s administration could not get satisfying answers on why Kenya was fond of hiking prices of contracts and land meant for infrastructure.

It has taken long before the first oil, due to divergent perceptions between us and the oil companies. Initially, I did not favor the idea of the pipeline. My question was: “Why export the oil. Don’t the East Africans need it?” In this, I preferred an Oil Refinery only. pic.twitter.com/EwcJZmQshP

— Yoweri K Museveni (@KagutaMuseveni) April 11, 2021

According to reports, President Museveni who is known to be a corrupt free leader despite other weaknesses, realized that if the pipeline takes the Lokichar to Lamu Port route, the project could stall due to fraud and settlement cases.

Museveni’s administration also weighed into the price of land in Kenya. According to sources, it was difficult for Uganda to make any constructive deal with Kenya because of land brokers some who are planted within the government itself. This would then derail his project through unnecessary court cases.

“The oil companies, however, were biased in favor of exporting crude oil only. The compromise, then, was: “Ok, let us have both the Refinery and the Pipeline.” Most of this, was when the Tanzanian route was not in the picture. We were still debating about Mombasa and Lamu,” Museveni noted.

Kenya and Uganda have severally failed to reach any business deal because of poor resource management. For instance, on SGR from Naivasha, Museveni had to shelve the whole plan citing feasibility concerns.

Secondly, the richest Nigerian Aliko Dangote reportedly fled the country saying it was infested with hungry government cartels who wanted to fleece him before he could even start setting up his cement factory in the country. The multi-million plant was instead taken to Tanzania.