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.
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.
- 1 Devolution is changing people’s lives in a big way
- 2 MCAs bank Sh376m in benefits at the height of pandemic
- 3 Kakamega County takes first bold step to bring essential services to villages
- 4 Corrupt governors killing purpose of devolution
"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.
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.