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Kenya Pipeline and the county government in talks over Sh9.6 billion regional oil depot

By Lydiah Nyawira | August 7th 2015 at 00:00:00 GMT +0300

Kenya Pipeline Company Ltd (KPC) and the county government are exploring the possibility of constructing a Sh9.6 billion oil depot and supply line.

Deputy Governor Samuel Wamaathai yesterday said the county government may consider constructing the depot at a lower cost of Sh1.6 billion, then lease the facility to KPC to run.

"We are going to carry out feasibility studies jointly with KPC and decide if the pipeline will be extended from Gilgil to Nyeri, or alternatively from Naivasha to Nyeri," Wamaathai said, adding that Nyeri is centrally located as a hub for petroleum products in the region.

Nyeri Deputy Governor Samuel Wamaathai (right) and Kenya Pipeline Company Business development Manager John Kithete (left) during talks on the construction of the spur line and depot located in Nyeri County. (PHOTO: LYDIA NYAWIRA/STANDARD)

The proposed depot is expected to serve neighbouring counties of Laikipia, Samburu, Isiolo, Meru, Murang'a, Tharaka-Nithi, Kirinyaga, Nyandarua, Embu, Baringo and some parts of Nakuru and Kiambu counties.

KPC Business Development Manager John Kithete said the firm was also holding discussions with other counties to determine the best location for the expansion of the pipeline across the country.

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"We have plans to devolve the pipeline to ensure we cover more parts of the country, as part of our Vision 2030. This is just a first step in the programme," Mr Kithete said.

Final approval

Kithete noted that current KPC projects are concentrated along one corridor, leaving out most parts of the country.

"The pipeline is the most efficient, economical and friendly way of transporting petroleum products across the country. We would like to ensure this happens in phases," he said.

He, however, noted that the final decision on the location of the depot would only be made after professional and technical studies are approved by the relevant Government agencies, the KPC board and the county government.

Wamaathai was accompanied by  Energy Executive Joseph Kiragu, Trade Executive Stanely Miano and County Secretary Wambui Kimathi.

Kenya Pipeline Company Ltd (KPC) devolution
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