Kenya Pipeline Company Takes Over Kenya Petroleum Refineries Limited in Strategic Move for Energy Sector
Nairobi — In a significant development for Kenya’s energy sector, the Kenya Pipeline Company (KPC) has officially taken over the Kenya Petroleum Refineries Limited (KPRL). The deed of the agreement between the National Treasury and the Ministry of Energy and Petroleum was signed today, marking a turning point for the struggling KPRL.
According to a new release by Kenya News Agency, KPRL had ceased operations in 2013 due to outdated technology that led to challenges including high sulphur content in its final products. The agreement allows KPC to implement updated assets, including the installation of a Liquefied Petroleum Gas (LPG) tank on a newly acquired 300-acre land parcel for KPRL. This move aims to increase the per capita LPG usage from 6.8 kg to 15 kg per household and decrease the price of cooking gas, thereby supporting climate change mitigation efforts.
In July of this year, the Cabinet had approved the acquisition of KPRL by KPC, empowering the Ministry of Petroleum and Energy and the Ministry of Treasury to form a technical and steering committee to finalize the shared agreement between the two state-owned parastatals. During the signing ceremony, Petroleum and Energy Cabinet Secretary (CS) Davies Chirchir lauded the committees for their concrete report. Chirchir stated that his ministry aims to collaborate with international companies through Private Public Partnerships (PPP) to enhance the petroleum product supply in the region.
Treasury CS Prof. Njuguna Ndung’u also weighed in on the agreement, noting that combining resources would optimize the operations of both KPC and KPRL. He revealed that the National Treasury has transferred 100% of shares held in KPRL to KPC without any mandatory considerations, as both institutions are government-owned. According to Ndung’u, the takeover signals the government’s commitment to enhancing operational relationships between the two organizations and creating value in the energy sector.