KPC bets on Sh60 billion projects to lower fuel prices

Kenya Pipeline Company has lined up Sh60 billion worth of projects that will be completed before the end of 2016.

The firm’s Managing Director Joe Sang reckons that completion of the four key projects, including doubling of the storage capacity at its Nairobi depot should result in lower retail pump prices.

Kenya Pipeline Company Managing Director Joe Sang (left) shares light moments with Standard Group CEO Sam Shollei (centre) and Editorial Director Joseph Odindo when he paid a courtesy call at the Standard Group Thursday. [Photo: WILLIS AWANDU/STANDARD]

“These projects would ensure lower final costs for consumers,” Mr Sang said while paying a courtesy call on the Standard Group Chief Executive Sam Shollei. A new pipeline linking Mombasa to Nairobi is nearly 50 per cent done, with a projected completion date set for September 30.

Another pipeline linking Sinendet to Kisumu will be commissioned next month, and is expected to significantly reduce fuel shortages that is often experienced in several towns in Western Kenya.

In the next phase of development, KPC has selected five major towns to host fuel depots that will be fed by an extended pipeline - estimated to cost Sh40 billion.

The firm said Busia, Migori and Taita Taveta towns have been considered, while a further decision will be reached to decide between Nyeri or Laikipia in Central Kenya and between Bomet or Kericho in the South Rift.

The State-owned firm hopes that the extension of the pipeline would help reduce the cost of moving petroleum products to Sh5 per kilometre for every 1000 litres, down from Sh8 on the road - according to an initial study.

The projects, he said, are bound to transform the region’s energy landscape.

KPC has previously announced that it was in consultation with County governments where the respective towns earmarked for the storage facilities to avail land for development.