In order to offer an update on the acquisition of Kenya Petroleum Refineries Limited (KPRL) by Kenya Pipeline Company (KPC), Cabinet Secretary for Energy and Petroleum David Chirchir, met with the County Government of Mombasa leadership, including Senator Mohammed Faki, Governor Abdulswamad Nassir, and other local authorities.
The Cabinet gave a green light on July 18, 2023, to KPC’s share transfer acquisition of KPRL without payment.
Following the approval, the Ministry created a multidisciplinary strategy and established a Steering Committee to carry out the Cabinet’s approval of the takeover.
The acquisition will largely help KPC to speed up operations that are concentrated on pipelines and storage space for petroleum products. By creating LPG bulk import handling and storage facilities at the KPRL, can hasten the growth of LPG per capita use.
Benefits: Rehabilitation of Kenya Petroleum Refineries Limited and planned capacity enhancement of the pipeline system, increased storage capacity for the country, enhanced Mombasa as the dominant trading hub in East Africa, and Manage petroleum products price hikes.
Therefore, it is anticipated that the acquisition will improve the infrastructure of the petroleum supply chain, resulting in increased supply security and cost effectiveness due to lower demurrage expenses.
By maximising the use of current downstream petroleum infrastructure, the acquisition also aims to develop synergy and increase efficiency in the petroleum value chain.
It is anticipated that both institutions’ financial performance will increase as a result of KPC’s acquisition of KPRL. Additionally, Kenya as a whole and the coastal region will benefit socially and economically from KPRL’s operationalization and expansion under the new shareholder.
