This security of supply has powered businesses and boosted agricultural production, improving the people’s lives.

STORAGE SPACE
In Eldoret, KPC is also constructing additional loading arms to cope with the rising demand for petroleum product uplifts at the depot, which serves western Kenya region and the neighbouring countries, including South Sudan.

The project will enhance the existing facilities to meet the anticipated increase in product uplifts by up to 2 million litres a day, achieving the full benefits of the Nairobi–Eldoret parallel line.

The project entails installation of two bottom loading facilities with three arms each to load diesel, super petrol, and kerosene to increase the service delivery efficiency.

Once completed in a month’s time, the loading arms will enhance flexibility, creating more storage space in Eldoret to feed western Kenya and the neighbouring countries.

DEVOLUTION PLAN
The construction of the Mombasa-Nairobi pipeline will enhance KPC’s pipeline devolution plan into the counties by increasing product availability in Nairobi that will feed into spur lines into western and central Kenya, Rift Valley and southern Nyanza. 

The new pipeline will also help to improve the reliability of fuel supply to Uganda, Rwanda and eastern Congo.

The line is expected to improve the safety, reliability and efficient delivery of petroleum products to KPC’s customers and reduce the constraints on storage space on the current 14-inch Mombasa-Nairobi pipeline. 

In the past few years, Kenya has lost its regional market share to Tanzania, mainly due to the unavailability of petroleum products in the western region.

PROMOTIONAL TARIFF

Increased availability of these projects should enable Kenya to regain its market share, especially in Uganda, Rwanda and Burundi.

It is in this light that KPC recently introduced a 30 per cent discount on all transit products in the western Kenya depots of Kisumu and Eldoret in a move aimed at capturing more of the regional fuel market.

The new rate has seen oil marketing firms pay a promotional tariff of Sh4,155 per 1,000 litres from Sh5,932 per 1,000 litres.

The KPC will in the coming years continue to invest heavily in increasing its capacity to serve both the local and export markets to position Kenya as a leading petroleum logistics hub in Africa.

Mr Sang is the managing director, Kenya Pipeline Company 

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