This archive report was first published on 24 May 2020.
On May 24, 2020, the Kenyan government announced a deal to transform Kisumu into a regional commercial hub by leveraging Lake Victoria as a key transport corridor. The government has funded the Kenya Pipeline jetty in Kisumu with Sh1.7 billion, breathing life into the war to regain control of East Africa's petroleum market.
Transport Cabinet Secretary James Macharia stated that all fuel products would be transported through the pipeline to Kisumu and then through the lake to the East Africa bloc. This move signals a return to maritime trade over the lake and the prospects of transforming Kisumu into a regional commercial hub.
The Kisumu oil jetty, which was technically handed over in December 2018, has struggled to pick up business due to delays by Uganda to complete its docking facilities at Jinja and Port Victoria. Controversies surrounding its construction have also clouded its success.
However, with the new directives, hopes are high that the multi-billion jetty is finally set to live up to its expectations to help revamp oil trade in the region. The construction of the jetty was shrouded in controversies over claims that the project was executed despite not being planned.
According to Macharia, the directives will come into effect on June 1, with the government also banking on its rail network system to transport other transit goods to neighboring countries. Fuel products will be transported by pipeline to Kisumu and then by water through Lake Victoria to Port Bell or Jinja, said Macharia.
Residents are upbeat that the blue economy that once thrived when the old Kenya Railway line was operational will return. David Arao, an MCA whose ward covers part of the port, said he was optimistic the developments will spur trade for local people.
