The Cabinet Secretary in the Ministry of Energy and Petroleum Opiyo Wandayi, has affirmed the Ministry’s commitment to strengthen Kenya Pipeline Company (KPC) infrastructure and systems across all the depots in the country to ensure efficiency in services in order to meet the increased demand both locally and internationally.
Speaking during his familiarization tour to Eldoret Depot, Eldoret, Uasin Gishu County, to identify the challenges and the coming up with the way forward to boost operations in terms of efficiency, the Energy and Petroleum CS reiterated the need to work collaboratively with partners, KRA and others including NGAOs, Kenya Police who are instrumental in securing this area and others in order to achieve the KPC mandate.
Noting that the government’s role is to provide a proper and an enabling environment in order to ensure stakeholders conduct their business operations in a convenient and profitable way, the CS affirmed his commitment to continue to support them in whichever way they may require to make work easier for the benefit of the people and the company.
He indicated that Energy and Petroleum is key in the economy of the country, it also serves a crucial role in the integration of the region by facilitating trade between Kenya and the East African and Central African countries in terms of export of petroleum products which account to 80 to 85 percent of the total monthly deliveries.
“We are going to add the storage capacity here in Eldoret for MSP (super petroleum) and for JET A-1 also, Diesel tank for Nakuru deport and Super and Diesel for Kisumu depot too so that we have seamless supply and flow of oil as compared to before when we had challenges of lacking these products due to lower storage capacity,” he said.
CS Wandayi lauded the work done by the KPC management in collaboration with stakeholders that has seen the exchequer receive Sh 6.9 billion to the national treasury this year. He expressed hope for a higher figure than that in the next financial year.
“This year alone you were able to give exchequer about Sh 6.9 billion, we are hoping for a higher figure than that next financial year. We are proud of this company and its management and staff, keeping up the spirit of working smarter and harder so that we can be able to get more output,” noted the CS.
KPC General Manager (GM) Eng. Okova Wangaki echoed the sentiments of the CS on the additional storage noting that it will help improve turn around and efficiency in terms of receiving to storage and transporting to the issuing tanks.
He emphasized that additional storage for Jet A-1 and MSP (super) means increased revenue and improved efficiency.
In his remarks, Eldoret KPC Depot Manager Eng. Jeremiah Mwangangi, pointed out that the PS27 Eldoret Depot is a vital hub for the distribution and supply of petroleum products to western Kenya and neighbouring countries of DRC, Uganda, South Sudan, Rwanda and Congo.
He underscored that the depot which has 45 000 million litres capacity for four products which include 2 tanks of Automotive Gas Oil (AGO), which is also known as diesel with a total capacity of 20 million litres, 4 tanks of Motor Spirit Premium (MSP) also known as super petrol with capacity of 12 million litres, 2 tanks of Illuminating Kerosene (paraffin) (IK) amounting to 3.8 million litres and 4 tanks of JET-A1 with total capacity of 5.2 million litres.
He expressed concern that the demand has increased by 10 times since the establishment of the depot in the year 1994, as he reiterated the need for capacity upgrade of the main line to supply enough stock to the depot.
“We are doing 7-10 million litres daily deliveries depending on the product availability, monthly this figure goes up to 175-185 million litres, exports amount to 80-85 percent of the total monthly deliveries,” he said.
He highlighted various challenges affecting business performance at the terminal which include limited flow rate and storage capacity leading to stock outs, low uplifts of IK in the depot leading to clogging of the pipeline system.
“The mandate will be achieved through timely and efficient loading of trucks for delivery of product to customers,” noted Eng. Mwangangi.
Additionally, political instability in the region like in the Democratic Republic of Congo (DRC) and South Sudan affecting truck turn around, different custom regimes; Uganda Revenue Authority (URA), DRC, South Sudan Revenue Authority (SSRA) and Rwanda Revenue Authority (RRA) affecting truck clearance from the depot.
Other challenges include the inefficiencies by Uganda National Oil Company (UNOC) and sourcing of product from Dar Es Salaam Tanzania by Oil Marketing Companies (OMCs).
He further proposed upgrade of the mainline to supply enough stocks top the depot, additional tank for JET-A1, capacity of 8000 cubic metres to optimize on the mainline utilization, additional MSP tank, capacity 12000 cubic metres to enhance MSP storage, rehabilitation of the depot access roads to ease the flow of trucks to and from the depot, replacement of aged loading equipment and the integration of the truck clearance systems for different countries.
On their part Uganda Revenue Authority and other revenue enforcement officers from the neighbouring countries who were present in the event commended the Kenyan government and the KPC for their cooperation with all custom authorities deployed to the source country where they get their oil products in order to remove trade barriers and improve trade efficiency.
“We have witnessed improved operations in terms of increased volumes of petroleum products. We have transported about 4 million litres of petroleum to Uganda now, we thank the new management, a lot of flow of trade has happened,” alluded Gerrald Mwanga, a URA Official.
Others present were Turbo Constituency Member of Parliament Janet Sitienei, National Government Administrative Officers (NGAOs), members of the Oil Marketing Companies (OMCs) and others.
By Ekuwam Sylvester and Judy Too
