By Benadeta Mwaura - Reporter
November 19, 2025- Uganda is barreling ahead with its massive EACOP (East African Crude Oil Pipeline), a 1,443 km project to carry crude from its oilfields to the Tanzanian coast. That might sound like a win for Ugandan energy ambitions, but for Kenya, it’s a complicated story. After all, Kenya and Uganda once clashed over oil trade, transit rights, and who profits from each drop.
The Pipeline That Changed the Game
The EACOP pipeline isn’t small-scale: when finished, it will move up to 246,000 barrels of crude per day from Hoima in Uganda to a terminal on Tanzania’s Tanga coast. Backed by financial heavyweights, regional banks like Afreximbank, Stanbic, KCB Uganda, and big companies like TotalEnergies, the project has already closed its first major financing tranche. This isn’t just infrastructure; it’s a statement, that Uganda is ready to export its oil independently, without relying on transit through Kenya.
Kenya, Uganda & the Oil Feud: A History in Transit
To understand why this pipeline matters to Kenya, you need to go back. For years, Uganda depended on Kenya’s Mombasa port and the Kenya Pipeline Company (KPC) to bring in refined petroleum products. But in 2024, Uganda and Kenya finally brokered a deal: the Uganda National Oil Company (UNOC) was licensed to import through Kenya, and would use KPC’s infrastructure.
Still, the peace is fragile. Kenya’s KPC has warned that losing transit volumes (if Uganda shifts more of its oil imports to its own routes) could cost Kenya billions. That’s because a large portion of KPC’s revenue comes from the transit business, Uganda, being landlocked, was once heavily reliant on Kenyan pipelines.
So, Why the Switch to EACOP, and Why It Burns for Kenya
Strategic Independence for Uganda: By building its own export pipeline, Uganda reduces its dependence on Kenya’s infrastructure. The Tanga route gives it direct access to global markets, providing power, both economically and politically. This move allows Uganda to control its oil exports and reduces vulnerability to transit disputes.
Lost Revenue for Kenya: If Uganda no longer relies on Kenyan routes to transport its oil, the Kenya Pipeline Company (KPC) stands to lose significant transit business. This isn’t just a corporate concern, it poses a national infrastructure risk, affecting revenue streams and Kenya’s strategic position in regional oil logistics.
Diplomatic Tensions Revisited: The EACOP pipeline has resurrected old grievances. Reports suggest that a proposed Uganda–Kenya crude pipeline (UKCOP) was abandoned due to political and business rivalries, effectively costing Kenya a major opportunity to benefit from regional oil transit.
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Environmental & Human Rights Alarm Bells: Critics have labeled EACOP as “corporate colonialism.” Thousands of people in Uganda have been displaced, with reports citing inadequate compensation. Human rights organizations, including Human Rights Watch, have condemned the repression of pipeline activists.
Climate Risk, Not Just Transit Risk: For Kenya, the pipeline’s implications go beyond lost transit fees. Fossil fuel projects like EACOP may undermine regional climate goals, and environmental costs could ripple across borders, impacting ecosystems and communities beyond Uganda.
What Kenya Should Watch (and What It Could Do)
Protect Its Interests: Kenya must closely monitor how much of Uganda’s oil transit business it actually risks losing. The country should also consider renegotiating terms or diversifying the use of its existing pipeline infrastructure to safeguard national revenue and strategic leverage.
Play the Regional Card: Beyond just transit, Kenya could position itself as a key partner in broader East African energy integration. This includes collaboration on regional refineries, shared infrastructure, or even investments in green energy projects, ensuring the country remains central to the region’s energy future.
Insist on Transparency: With numerous social and environmental concerns surrounding EACOP, Kenya should demand clarity on compensation, resettlement, and climate mitigation for affected communities. Transparent processes will help protect both people and ecosystems while maintaining public trust.
Leverage Diplomacy: Kenya’s past oil import disputes with Uganda demonstrate that political solutions matter. Close, sustained dialogue will be critical as EACOP progresses, balancing regional cooperation with national interests and mitigating potential tensions before they escalate.
This pipeline is more than just a tube carrying oil, it’s a power play. Uganda is asserting its sovereignty, building a future that doesn’t rely on Kenya’s good graces. But for Kenya, that means a shifting balance: of economics, influence, and risk.
If Kenya isn’t careful, it could lose not just revenue, but its place in East Africa’s oil map. But if it acts smart, this could be an opportunity to reshape its energy role in the region, pushing not just for profit, but for fairness, sustainability, and long-term partnership.
