news 10 June 2026 Daily Monitor (Uganda)
EACOP Layoffs Signal Growing Job Cuts in Uganda's Nascent Oil Sector
As the East African Crude Oil Pipeline (EACOP) nears completion, the project company has begun significant layoffs, raising concerns about job security and potential discrimination against local staff. Source: https://www.monitor.co.ug/uganda/news/national/oil-pipeline-layoffs-signal-job-cuts-surge-in-sector-5491082
Mass layoffs have begun at the East African Crude Oil Pipeline (EACOP) project in both Uganda and Tanzania as construction winds down. This move has generated anxiety among employees and fueled claims of preferential treatment for expatriate staff during the transition to the operations and maintenance (O&M) phase.
Employees working for Eacop Ltd., the pipeline’s holding company, were reportedly informed of contract extensions from July to October 2026 to “support the company’s transition requirements.” However, these extensions explicitly state they do not guarantee continued employment beyond the new expiry date, nor do they create an indefinite employment relationship.
Sources indicate that Eacop Ltd., which employs approximately 200 permanent staff in Uganda and 400 in Tanzania, plans to retain a significantly smaller core team of 50 to 100 individuals for the O&M phase. The fate of local staff remains uncertain, with reports suggesting their positions may be re-advertised, potentially creating an uneven playing field against expatriate workers.
This situation has ignited simmering discontent among local staff over past grievances, including disparities in overtime compensation, food allowances, hotel catering policies, and a discontinued gratuity scheme. There are also ongoing complaints about welfare discrepancies between Ugandan and Tanzanian employees.
The Petroleum Authority of Uganda (PAU) has stated that these workforce reductions are a normal and planned transition from the construction to the operation phase, consistent with industry practices and national regulations. PAU spokesperson Didas Mumuhuza emphasized that while construction requires a larger workforce, operations demand different skill sets. He assured that the demobilization is in line with Ugandan labor laws and contractual obligations, with oversight from the PAU to ensure compliance.
While the oil sector has seen substantial investment and job creation, with over 90% of positions filled by Ugandans, the completion of major infrastructure projects like EACOP, Tilenga, and Kingfisher means the number of available jobs is set to decline sharply. The PAU acknowledges that the sector is transitioning from a peak of approximately 200,000 jobs to a lower number required for ongoing operations and maintenance.