Kisumu oil jetty to accelerate Lake region’s economic growth

The MT Harambe is brought back to Kisumu port after refurbishment last year. The vessel has capacity of 750,000 litres of petroleum products. [Collins Oduor, Standard]

The Sh1.7 billion Kisumu oil jetty will be commissioned in the next two months, Ministry of Petroleum Chief Administrative Secretary John Mosonik has said.

Eng Mosonik disclosed the jetty was ready to start active business and that they were only awaiting Uganda to commission its jetty to ease oil exports in East Africa.

“We want to assure the public that in one or two months, the Kisumu oil jetty will be commissioned by the president,’’ the CAS said in Kisumu.

The facility is expected to supply petroleum products to Uganda, Rwanda, Burundi the eastern Congo region and parts of Tanzania.

Currently, repair works for the railway lane linking Kisumu port to the jetty in readiness for active oil business are ongoing.

The newly refurbished wagon vessel, MV Uhuru is ready for use to transport liquefied products from Kisumu to regional destinations when it resumes daily voyages.

Last week, the vessel made a maiden trip to Port Bell, Kampala and came back with 22 empty oil tanks to be filled at the Kisumu jetty.

A group of private investors comprising India’s Mahathi Infra Group and Uganda’s Fortune Energy are under pressure to complete the Ugandan jetty.

This includes storage tanks, which are now 20 months behind schedule and only 60 per cent complete.

It is estimated that the Ugandan part of the project will cost $270 million (Sh27 billion) and will have an oil jetty, fuel tankers and storage tanks.

The Kisumu facility was completed in March last year. Mosonik said the jetty will link the northern corridor’s road and rail networks from Mombasa.

The projects are part of the Lake Victoria transport system intended to exploit the lake as a cheaper, safer and more efficient transport corridor.

On Friday, Mosonik told delegates in Nyanza that the revived Kisumu port and oil export business would spur economic tourism in the region.

“Tourism is a service industry which generates important foreign exchange earnings and, therefore, we cannot overlook the role that business tourists will play,” said the CAS.

He urged the tourism industry players to develop new strategies to promote foreign direct investments in tourism by exploring new business openings at the port.

Business tourists

Kisumu Deputy Governor Mathews Owili said the return of the MV Uhuru  would  boost the regional economy, create employment and improve movement of cargo.

He lauded the role of domestic tourism, saying it was a significant source of income and employment to the local communities.

“Inflow of profits for tourist resorts and many locally-run hotels will increase once the Kisumu port is commissioned and the oil jetty starts active business,’’ said Dr Owili

He said travellers are looking for new destinations, and developing countries could offer attractive alternatives with viable business opening.

Kisumu, he said, is also set to host the 2021 Africities Conference, which will be a major economic boom for the county. He urged various stakeholders to get ready to tap the diverse business openings it will herald in transport, hotel and taxi businesses and boat tours.

A director at Tourism Fund, Biko Gwendo said the four counties bordering Lake Victoria - Kisumu, Siaya, Migori and Homabay - need to ease the process for hotel investors.

He said licensing must be made easier and quicker, and with incentives to ensure the region attracts more tourist-friendly hotels along the lake.

This, he said, is the only sure way of opening up the region’s tourism potential.

Mr Wendo was speaking at a workshop organised by the Kenya  Association of  Tour  Operators.