The State plans to set up bulk LPG import handling and storage facilities at the Kenya Petroleum Refineries Limited (KPRL) in Mombasa after the takeover by Kenya Pipeline Company (KPC).

Energy and Petroleum CS Davis Chirchir says KPC acquisition of KPRL is almost complete after extensive talks between his Ministry, KPC, KPRL and Mombasa County Government.

Speaking during a media briefing at Mombasa Governor Abdulswamad Sharif Nasir’s office, Chirchir revealed that the acquisition of KPRL by KPC will be finalized in the coming weeks.

The Cabinet Secretary indicated that the the approval of the acquisition by the Cabinet will see KPC acquire KPRL through a transfer of shares without any monetary compensation.

“The acquisition is envisaged to facilitate KPC to expedite pipeline operations and enhance storage capacity for petroleum and petroleum products thereby fostering synergy in the petroleum value chain,” said Chirchir.

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He added, “This will stabilize the supply of petroleum products in the country and ensure cost-efficiency through reduced demurrage costs.”

The CS added that the takeover will optimize the use of the 370-acre beach front KPRL facility for use to establish bulk LPG import handling and storage facilities and increase Kenya’s LPG consumption from 7kg per capita to 10kg in the next three to five years.

The move will also enable Kenya to expand her pipeline and storage capacity to better handle petroleum and petroleum products price hikes to boost Mombasa as a regional hub.

Chirchir assured that no jobs will be lost since KPC and KPRL signed a Lease Arrangement in March 2017 that allowed KPC to manage and operate the facilities owned by the refineries.



Ministry of Energy and KPC officers on Wednesday met political leaders from Mombasa to seek their support and areas of cooperation between the national and county governments.

The transfer of shares from KPRL to KPC is slated for August 31, 2023, with the government, KPC and KPRL set to finalise on KPRL funding, mandate, job security, HR structures and Instruments harmonization, resolution of stalled CBA negotiations within the next one year.