Kenya does not plan to go back into crude oil refining following the takeover of the defunct State-owned Kenya Petroleum Refineries Ltd (KPRL) by Kenya Pipeline Company (KPC).
Energy and Petroleum Cabinet Secretary Davis Chirchir said 45 tanks with a total storage capacity of 484 million litres will make Kenya competitive in the region.
He said KPRL has been operating at a loss and the takeover by KPC will ensure that the resources which have been lying idle since 2013 are utilised.
“KPC is coming in with a strong balance sheet of about Sh150 billion and the takeover will help to revamp the petroleum industry not only to bring down the cost of fuel but also to increase our market share in the East African region,” said Mr Chirchir.
Speaking after meeting Mombasa leaders; Governor Abdulswamad Nassir, Mombasa senator Mohammed Faki and Omar Mwinyi (MP Changamwe), he said the government had contracted Price Water Coopers (PWC) which recommended the tanks to be used for storage.
