This archive report was first published on 4 November 2019.
On November 4, 2019, Kenya made a significant move to regain its position as a preferred route for oil importers from landlocked countries. The country slashed pipeline tariffs by 50% in a bid to win back the regional fuel transport market, which it had lost to Tanzania's port of Dar es Salaam.
The Energy and Petroleum Regulatory Authority (EPRA) gazetted new tariffs, setting the rate at $30.89 per 1,000 litres from the previous $60 for the same volume. This three-year revision will see the rates fall further to $30.65 in 2020 and to $29.07 in 2021.
Currently, it costs $60 per 1,000 litres of fuel that passes through the Kenyan pipeline and an additional $35 on trucks to and from destination countries. In contrast, the average cost of moving oil via Tanzania's Central Corridor road network to and from Dar es Salaam is $80.
The tariff revision comes on the heels of Tanzania's announcement of forming a task force to improve efficiency at the Dar port. The team, led by Works, Communications and Transport Minister Isaack Kamwelwe, will bring together at least 20 stakeholder organisations from key institutions, both public and private, involved in cargo clearance at the port.
