By ANTHONY KITIMO
Kenya Pipeline Company (KPC) has assumed control of the defunct Kenya Petroleum Refineries Ltd (KPRL), repurposing it for fuel storage. This marks the second ownership change for the facility, following its 2016 sale to Indian investor Essar Energy Overseas Ltd, which later transferred it to the government after failing to revive operations.
The acquisition aligns with the recent launch of the New Kipevu Oil Terminal, which conducted a dry run at Mombasa port this week. Officials claim the move will mitigate long-standing supply chain inefficiencies, reducing fuel shortages and high retail prices.
KPRL's 45 tanks offer 484 million liters of storage, with 254 million liters allocated for refined products and 230 million for crude. KPC's network includes seven depots and a Nairobi terminal, totaling 745.5 million liters. The facility has been non-operational since 2013 after a $1.3 billion investment plan was scrapped. KPC's expanded storage is expected to cut shipping costs for oil marketers.
