/ 17 January 2008

Kenyan neighbours still feel pinch of crisis

Fuel and basic commodity shortages in landlocked countries neighbouring Kenya, which is wracked by political unrest, have eased but traders are hoarding supplies and prices have risen steeply.

Kenya is the gateway to several other eastern African nations such as Burundi, Rwanda, Uganda and Southern Sudan.

Political unrest in Kenya after the disputed re-election of President Mwai Kibaki has killed more than 600 people and has resulted in transport problems that have choked supplies.

Police have had to escort convoys of fuel tankers through dangerous sections of the Mombasa-Kisumu highway that is the main supply artery into the neighbouring countries.

Uganda continued to suffer scarcity of fuel although tankers were now arriving in Kampala.

”We have instituted a technical team to investigate why we import sufficient petroleum products but the fuel pumps [operators] claim that they are dry,” Energy Minister Daudi Migereko told Reuters.

”We strongly suspect that businessmen are simply hoarding the fuel to make more profits, which is illegal.”

Uganda has said it would diversify supply routes to Tanzania and lay a pipeline linking Kenya to its capital, Kampala. The country is a key link to north-eastern Democratic Republic of Congo, Rwanda and Southern Sudan.

In Rwanda, authorities said they had resorted to importing fuel through Tanzania and kept a rationing system they instituted when the crisis hit.

”Volumes coming in from Kenya are quite low,” said Justin Nsegiyumva, a top official in the ministry of Commerce, Industry and Investment Promotions.

”We have not experienced any major crisis so far. Even the supply chain of consumables from Kenya is still stable.”

Through Tanzania

Rwanda’s southern neighbour has also turned to the arduous and expensive route through Tanzania, although fuel trucks from Kenya’s port in Mombasa were now arriving in Bujumbura.

”Kenyan security forces are now ensuring security for the convoy of trucks from Eldoret to the Ugandan border,” said Aime Rwankineza, deputy head of oil importers’ association.

”Even our trucks which were blocked there arrived, fears of fuel shortages are now over.”

Eldoret is the Kenyan town worst hit by ethnic violence. Opposition supporters there burnt alive 30 people from Kibaki’s Kikuyu tribe that were sheltering in a church.

In semi-autonomous southern Sudan — trying to rebuild an economy battered by a two-decade long war — businessmen and non-governmental organisations were still feeling the pinch. ”Its now five Sudanese pounds (about $2,50) for a litre of diesel, double normal. If it keeps like this … we’ll have to spend $10 000 more this year. Our whole budget is only $70 000,” said Jose Vieira, who works at a local radio station.

A hotel owner said businesses had to cut back on the use of generators and were paying as much as 25% more than normal for other goods.

The region is especially vulnerable to any disruptions.

Southern Sudan’s Minister for Information, Gabriel Changson Chang, said the shortages had led to new plans to diversify the south’s dependence away from next-door Kenya and Uganda.

”We want to make more use of the Nile River barges that connect the south and Khartoum. We are also looking to construct fuel depots so we have storage systems and examining how to open up our roads to Ethiopia,” he said. – Reuters