Kenya Pipeline Company has concluded the takeover of State-owned Kenya Petroleum Refineries Limited, which has failed to live to its status as East Africa’s only oil refinery.
This is the second time the facility is exchanging hands in the past eight years, after Shell and the British Petroleum Company BP, sold it to Indian investor Essar Energy Overseas Limited in 2016.
Kenya Energy Permanent Secretary Andrew Kamau said the takeover coincides with the operationalisation of the New Kipevu Oil Terminal which started a dry run this week at the port of Mombasa.
Experts maintain that the acquisition of the refinery by KPC will significantly cut on perennial inefficiencies that characterise the petroleum products supply chain, which translate into high prices at the pump.
The increased storage capacity at KPC will also save oil marketing firms millions paid to shipping firms as demurrage charges.
Broadcast-Journalist News Reporter // News Presenter Pearl Radio