Kenyan neighbors still feel pinch of crisis

By Francis Kwera

KAMPALA (Reuters) - Fuel and basic commodity shortages in landlocked countries neighboring 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 neighboring 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 northeastern 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 told Reuters.

"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 neighbor 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."