Economy

KPC launches Western Kenya pipeline in June

pipe

Workers lay oil pipeline near Eldoret town in 2010. PHOTO | FILE

A new and wider 122km fuel pipeline between Kisumu and Sinendet is marked for commissioning by June as Kenya Pipeline Company (KPC) looks to improve product supplies in western Kenya.

The latest update by the KPC said the Sh5.7billion project was more than 80 per cent complete, with the entire product pipeline already buried underground.

“The project is bound to increase supply to western Kenya and by extension the export market of Uganda, Eastern DRC, Rwanda, Burundi and northern Tanzania,” KPC managing director Joe Sang said.

The 10-inch pipeline is expected to increase product flow to Kisumu depot by 350,000 litres per hour and optimise tank utilisation, which currently stands at 30 per cent due to low capacity six-inch line.

“Kisumu has been experiencing product stock-outs because the current six-inch line that supplies the area is not sufficient,” Mr Sang further said.

The new pipeline to Kisumu will boost plans by the KPC to extend its current distribution network to counties.

It has already invited bids for feasibility studies for preliminary design and identification of viable depot locations in Western region, South Nyanza, South Rift, Lower Eastern and Mount Kenya.

READ: KPC targets counties in new distribution network expansion

The KPC has depots at the Nairobi terminal, Jomo Kenyatta International Airport (JKIA), Mombasa International Airport, Kipevu, Nakuru, Kisumu and Eldoret with a combined capacity of 612.33 million litres. These seven depots are linked to the main pipeline.

The company in September said it plans to lease oil storage facilities from private investors in Nairobi and Mombasa to improve product distribution and supply.

Extra storage is critical to oil marketers in the region because of thin profit margins from sales. In fragmented markets such as East Africa’s, bulk supplies hold the key to profitability.

The KPC said it plans to lease operational terminals in Nairobi and Mombasa with a capacity of 30 million litres and 100 million litres, respectively.

“The terminal must be fit for purpose for immediate use,” the company said as it called for bids by interested terminal owners.