Hon. John Munyes, Cabinet Secretary, Ministry of Petroleum and Mining has underscored the importance of Kenya Pipeline Company (KPC) as a key engine for economic growth and one of the most profitable public institutions.
The CS said that oil was a leading economic driver of any economy and that it was thus incumbent upon KPC to double its effort for higher profits and ensure that all key projects are completed and implemented on time, to be able to fulfill its mandate and maintain its status as a premier institution in the region.
Speaking during his maiden visit to the Kenya Pipeline Company (KPC) Headquarters, in Nairobi’s Industrial Area a day after he took over office as CS Petroleum & Mining, Hon John Munyes accompanied by Mr. Andrew Kamau, the Principal Secretary, Petroleum addressed the KPC top management team and reiterated the need to effectively pursue their targets in an endeavor to enhance economic growth and realize the flag ship projects in tandem with the provision of the country’s blue print, the Kenya Vision2030.
“Kenya and the region rely on KPC for fuel reliability and availability; the company’s projects were therefore very instrumental to the country’s economic and social prosperity. “You have a huge responsibility in ensuring that fuel gets to our people in time for them to take part in nation building,” sais Hon. Munyes.
The Cabinet Secretary’s Familiarization tour of KPC included the Chair Board of Directors Mr. John Ngumi and Managing Director Mr. Joe Sang giving an overview of the Company’s core projects and programmes as well as the implementation status and challenges encountered. The KPC Chair John Ngumi agreed that the state Corporation is the nation’s economic lifeline. “We are cognizant of the projects’ strategic value and the scale of impact they are going to generate. That is why as a Board, we are continually offering guidance and overall leadership to ensure that the projects are completed in the next few months,” Ngumi assured the CS Munyes.
KPC that is on schedule with projects such as the oil jetty and Mombasa-Nairobi Pipeline delivery hopes to boost fuel exports through Uganda and Tanzania. “The Kisumu Oil Jetty is now complete and the contractor is handing over the project to us on 28th April 2018. The Mombasa-Nairobi pipeline and the additional storage tanks in Nairobi will be complete by March 31st 2018 and 30th April 2018 respectively. The jetty is expected to boost throughput in Kisumu by 1 billion litres a year in phase 1 and up to 3 billion litres per year by 2028,” said Joe Sang, MD at KPC.
With such volumes, the project has the potential to turn Kisumu into a focal point of oil and gas trade in the region with prospects of making it one of the busiest inland ports in Africa.
Mr. Joe Sang added that KPC is undertaking a number of essential petroleum infrastructure projects to enhance the availability of fuel in Kenya and neighboring countries including the replacement of pipelines, enhancement of storage capacity and investment in loading facilities. Some of the key projects currently in their last phases are the new Mombasa-Nairobi pipeline (Line 5), the storage tanks in Nairobi Terminal and the Kisumu Oil Jetty.
He said that the installation of additional loading facilities to cope with the rising demand for petroleum products uplifts at KPC Eldoret depot, which serves Western Kenya and the neighbouring countries, is complete and the new facility is expected to enhance the country’s fuel exports in the medium to long term.
“Since the new truck loading facility became operational in July this year, evacuation of product in Eldoret has increased from 4 million litres per day to a massive 6.5 million litres per day. This has increased service delivery efficiency in the depot while maximizing the full benefits of the Nairobi-Eldoret pipelines,”
Sang revealed that in the near future, on completion of these projects, Kenyans will be able to enjoy affordable pump prices as the fuel will no longer be transported by trucks but the pipelines. In addition, the completion of the pipeline from Sinendet to Kisumu (Line 6) that was commissioned in 2017 is now showing results with boosted petroleum product availability in Western Kenya and the export market of Uganda, Eastern Democratic Republic of Congo, Rwanda, Burundi and Northern Tanzania.
Once these projects are commissioned, Kenya will be assured of adequate, reliable and cost effective supply of petroleum products across the region.