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KPC eyes bigger share of regional market with construction of oil jetty in Kisumu

The Kenya Pipeline Company (KPC) plans to construct an oil jetty in Kisumu County in a move aimed at easing transportation of petroleum products to the neighbouring countries of Uganda, South Sudan, Rwanda,Burundi and the Democratic Republic of Congo.

This comes after KPC devised a new strategy meant to boost Kenya’s chances of regaining its share of the East African petroleum market with improved fuel supply to the neighbouring countries.

During a recent trip to Rwanda by KPC’s top strategy executives, it emerged that Kenya’s grip in the regional market has been shaken by Tanzania’s Central Corridor which is said to have less market entry barriers than the Kenyan route.

The project plan by the State owned Corporation established on 6th September, 1973 under the Companies Act (CAP 486) of the Laws of Kenya and started commercial operations in 1978, has been aided by the newly opened the 122km pipeline from Sinende in Nakuru County to Kisumu earlier this year.

“KPC now has enhanced infrastructure which has led to improved petroleum product availability in Western Kenya which has made access to Rwanda market much easier than before,” Martin said during a recent stakeholders’ cocktail/dinner at Serena Hotel, Kigali.

“The new Sinendet-Kisumu pipeline which is now fully operational has enhanced petroleum product availability in Western Kenya and the export market comprising Uganda, Eastern DRC, Burundi, Northern Tanzania and of course here in Rwanda.”

The event was attended by the Kenyan High Commission officials among other key representatives.

The line now supplies over 39 million litres daily to the Kisumu depot, up from 12 million. The upgrade saw a 10 inch pipeline constructed parallel to the existing 1992 six inch one.

Kisumu which receives about 60 per cent of the country’s petroleum products, supplied to western region and East African countries including parts of Tanzania, DRC, Rwanda, Burundi and South Sudan.

Refined petroleum which forms 13 per cent of Kenya’s total exports is Kenya’s third largest export product after tea and cut flowers (2014).

Kenya exported more than 2.8 billion litres to the five East African countries by June 2015 according to data provided by KPC of which Uganda is Kenya’s biggest importer of petroleum products at 1.16 billion litres.

It is followed by South Sudan, DRC and Rwanda which imported 461 million litres, 303 million litres and 32 million litres respectively.

 

 

 

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