Parliament wants unoperational refineries company dissolved

Oil storage tanks at the Kenya Petroleum Refineries site at Changamwe in Mombasa County. [File, Standard]

A parliamentary committee has recommended that Kenya Petroleum Refineries Limited (KPRL), which ceased operations about 10 years ago, be dissolved before the end of this year.

The Public Investment Committee on Commercial and Energy Affairs on Monday told Energy and Petroleum Cabinet Secretary Davis Chirchir to expedite the dissolution of the KPRL and its Mombasa oil storage tanks and employees be handed over to Kenya Pipeline Company (KPC).

According to the committee’s chairman David Pkosing, KPC pays KPRL Sh1.3 billion annually for the use of its storage facilities, which is unnecessary.

“We recommend that KPRL be dissolved before the end of the year to save Sh1.3 billion paid by KPC. The savings can go towards lowering the cost of petroleum in the country,” Pkosing said during the committee’s meeting at Serena Beach Hotel in Mombasa.

He said the recommendation followed audit queries from the auditor general over the payment of taxpayers’ money to the dormant public firm amid the high cost of fuel.

KPC has been seeking to take over 45 storage tanks with a capacity of 484 million litres belonging to the KPRL at Changamwe, for use to store oil products.

KPC wants to increase its storage capacity following the commissioning of the new Kipevu Oil Terminal 2, which has increased volumes of imported oil.

Pkosing told KPC to formulate a policy on waivers given to oil marketers in the country to stop corruption or discrimination among them.

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