The government’s introduction of a promotional tariff for exporters in April has enabled Kenya Pipeline Company Limited (KPC) to record a 20 percent growth in exports.
According to the company, the tariff is applicable to oil marketers accessing oil for export through its Kisumu and Eldoret depots which are the most economical and convenient depots for petroleum exporters. Joe Sang, KPC Managing Director says the company will soon review the tariff with a view to making it permanent.
Sang, “The market has received the tariff well and our expectation is to grow our volumes by an additional 30 percent before the end of the year. The company will be reviewing the tariff in the next few weeks with a view to determining if we can make it permanent.”
KPC in April 2017 introduced a promotional tariff of USD 41.55 (Kshs 4,238) per 1,000 litres on all transit products in its Kisumu and Eldoret Depots from the current 59.32 (Kshs 6,050) per 1,000 litres.
In addition to reducing transport cost for oil marketers, the tariff has gone a long way in enhancing road safety and protecting the environment by removing hundreds of trucks from our roads.
The company has already invested heavily in increasing its capacity to serve both local and export markets. One of the key investments geared towards increasing product availability in both Western Kenya and export market was the commissioning of the Sinendet – Kisumu parallel pipeline (Line 6).
This 122km 10-inch diameter pipeline runs parallel to an existing 6-inch diameter pipeline from Sinendet to Kisumu (Line 3) which has enhanced petroleum product availability in the Western Kenya and the export market of Uganda, Eastern DRC, Rwanda, Burundi and Northern Tanzania.
In addition, KPC has also installed additional loading facilities to cope with the rising demand for petroleum products uplifts at Eldoret depot which serves Western Kenya region and the neighbouring countries namely Uganda, Eastern DRC, Rwanda, Burundi, Northern Tanzania and South Sudan.
The new loading arms have enhanced operational flexibility creating more capacity in Eldoret to feed western Kenya and the neighbouring countries.
