State to rein in rogue oil importers

By Willis Oketch

The Government has commissioned an independent inspection and testing company, Geo Chem, to expose oil marketers who import sub-standard fuel products.

The firm, which won an inspection tender advertised by Kenya Bureau of Standards (Kebs) carried out its first assignment on a 70,000 metric tonnes of jet fuel that was discharged at the Kipevu terminal.

Though no official results were released on the exercise watched over by Industrialisation Minister Henry Kosgei, preliminary results showed the jet fuel was substandard and did not contain the required energy.

Briefing the Press, Kosgey said Kebs and the new firm took samples from the ship for testing, an exercise that will be done on all fuel imports.

"We have decided that this fuel at the port must be subjected to testing to determine if it meets the required standards," said Kosgey.

Kebs MD, Kioko Mang’eli said preliminary results showed the jet fuel does not discharge the required energy when burned by jet engines.

"Our work is to ensure standards are met and the customer gets value for their money," explained Dr Mang’eli adding that Kebs lack of involvement in the oil sector has seen imports of substandard fuel products.

The MD said the partnership with Geo Chem would not only ensure that consumers get quality product but also curb under declaration of imports by oil marketers.

Prior to the entry of Geo Chem, oil importers made arrangements with private companies for testing and verifying quantity, a process that was open to manipulation by unscrupulous importers.

Revenue loss

Mang’eli said last year alone, close to 35 per cent of the oil imports could not be accounted for resulting in tax revenue loss.

He is upbeat that the engagement of Geo Chem would save the exchequer the revenue loss.

Rajiv Bahl, Geo Chem Middle East managing Director said his firm was dedicated to serve the Kenyan market citing the investment of Sh269.5 million ($3.5 million) in a lab at its Mombasa office was a demonstration of the firm’s commitment.

"We are renowned as cargo inspectors and surveyors and have proven our expertise in inspection, survey and testing of diverse export, import and locally traded cargo and commodities," said Bahl.

He said Geo Chem boasts of an independent, unbiased and quality driven inspection and testing company.

Mangeli regretted that for many years Kenya has been a dumping place for substandard fuel.