Cabinet has given Kenya Pipeline Company (KPC) the green light to acquire Kenya Petroleum Refineries Limited in a move it says will play a key role in reducing the rising fuel prices.

According to the Cabinet Office, KPC’s acquisition of the country’s strategic petroleum refinery will ensure there is efficiency in the volatile fuel supply chain in Kenya.

The cabinet office also noted that the strategic move will also reduce port charges slapped on petroleum imports and also improve the penetration of Liquefied Petroleum Gas (LPG).

“This State intervention is expected to enhance petroleum supply chain infrastructure and thereby result in security of supply and cost-efficiency through reduced demurrage costs and enhanced penetration of LPG usage in the country through the development of LPG bulk import handling and storage facilities,” said a dispatch from the Cabinet Office.

The cabinet also said the refinery acquisition by Kenya Pipeline will boost collaboration in the petroleum sector and better utilize the existing downstream petroleum infrastructure.

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The refinery has largely remained idle after it stopped processing crude oil with KPC only using a section to store LPG, premium petrol, dual purpose kerosene, gasoline and fuel oil.

The cabinet, in its Tuesday session, also sanctioned the suspension of the 30 per cent requirement for local shareholding in foreign ICT companies as stipulated in the ICT Policy.

The cabinet argues that the decision seeks to spur creation of digital economy jobs by attracting more foreign firms to invest in Kenya’s vibrant technology and innovation sectors.


“The policy shift is geared towards facilitating technology and knowledge transfer as well as to aid the expansion of the digital economy by positioning the country for increased foreign investments in technology as envisioned in the Administration’s Bottom-Up Economic Transformation Agenda (BETA),” concluded the brief.

The cabinet further approved the partnership agreement with the United Nations Development Programme (UNDP) on Information, Communication and Technology.

“The framework will focus on digital skilling and upskilling, digital jobs, and digital businesses through support for the Konza Technopolis under the Jitume Programme.”