Kenya Pipeline Company (KPC) has engaged a transaction adviser to pursue the acquisition of Kenya Petroleum Refineries Limited (KPRL), a state-owned refinery that ceased operations in 2013. The move comes as KPC seeks to leverage KPRL’s strategic assets under the Procurement and Asset Disposal Act.
The company issued a call for bids from qualified advisers by February 11, 2022, following a 2017 agreement to manage KPRL’s storage facilities. This follows Essar Energy’s 2009 acquisition of a 50% stake in the refinery, which later failed to revive operations.
KPC’s 2020 Annual Report highlighted the potential of KPRL’s location for trans-shipment and trading hub development. The board stated the acquisition would align with national development goals, aiming to improve supply chain efficiency and reduce costs for oil marketers.
Industry analysts suggest the deal could address long-standing supply chain inefficiencies contributing to high fuel prices. The expanded storage capacity would also reduce demurrage charges for oil firms, according to the report.
KPRL, originally established by Shell and BP in the mid-20th century, operated as a regional oil hub before ceasing crude processing. The refinery remained inactive after a KSh121 billion revitalization plan was abandoned in 2021, according to the source.
