Kenya Pipeline Company (KPC) is set regain its share of the East African petroleum market following completion of the Kisumu Oil jetty.
The Kisumu oil jetty is expected to deliver petroleum products to neighboring Rwanda, Burundi, Uganda, Eastern DRC and parts of Tanzania.
Speaking during the technical handover ceremony in Kisumu, KPC’s Managing Director Joe Sang said the oil jetty is expected to create an efficient and commercially viable integrated marine fuel transportation system for the region; resulting in reduced transportation costs for the oil marketing companies.
“The introduction of an oil jetty will transform Kisumu into the region’s petroleum export hub. This will significantly boost Kenya’s chances of regaining its share of the East African petroleum market with improved fuel supply to western Kenya.” Sang added.
According to KPC Chairman, John Ngumi said emerging opportunities both on the Lake and on land will stimulate economic activity across the Great Lakes region with an increase in vessels inspiring other industries to take up this mode of transport.
“The jetty is expected to increase maritime transport activities on the lake with the shipping and docking facilities required to support the venture also enabling other industries to develop additional transport services along the lake,” said Ngumi.
Ngumi said a sufficient and efficient infrastructural system is vital to ensuring adequate, reliable and cost-effective supply of petroleum products across East Africa.
The construction of the jetty commenced in June 2017 following a successful tendering process that saw a Kenyan engineering firm, Southern Engineering Company (SECO) awarded the Kshs 1.7 billion contract to construct the oil jetty. The project has been completed on time and within the budget. The handover of the jetty marks a major milestone in the development of KPC petroleum projects as the first major infrastructure project awarded to a Kenyan company.
The Jetty will boost throughput in Kisumu by 1 billion liters a year in phase 1 and up to 3 billion liters per year by 2028.
To ensure that the new jetty is adequately supplied and can sustain the export market, Kenya Pipeline has already completed the construction of the new 122km Sinendet Kisumu pipeline (Line 6) which was commissioned in July last year.
Although refined petroleum is the third largest export product after tea and cut flowers, the country’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.