Kenya Pipeline Company (KPC) commemorated its 50th anniversary at the Kenpipe Plaza, where key stakeholders gathered to celebrate the significant achievements of the company in ensuring a consistent and secure supply of petroleum products in Kenya.
The event saw high-profile figures, including Energy and Petroleum Cabinet Secretary Davis Chirchir and KPC Managing Director Joe Sang highlight the company's remarkable journey and its vital role in Kenya's energy sector.
Chirchir, the Energy and Petroleum Cabinet Secretary, praised KPC for its unwavering commitment to safeguarding Kenya's energy supply over the past half-century.
In his address, Chirchir acknowledged KPC's resilience in navigating economic fluctuations, adapting to evolving regulations, and addressing global energy transitions.
He emphasized the critical role KPC plays in ensuring Kenya's energy security.
"Courtesy of KPC's storage facilities, Kenya has an 18-day fuel reserve which buffers the Country from fuel supply disruptions due to external factors or unforeseen emergencies. KPC's storage facilities and reserve systems currently have a cumulative capacity of 887,227 cubic meters," Chirchir said.
Chirchir also reassured Kenyans of the government's commitment to supporting KPC in fulfilling its mandate.
He pointed out the recent transfer of shares from Kenya Petroleum Refineries Ltd (KPRL) to KPC as evidence of this commitment as the government seeks to contain the spiraling fuel prices.
The merger of the two parastatals is expected to enhance synergy in the petroleum value chain, expand KPC's storage capacity, enable pipeline system capacity enhancements, and mitigate petroleum and petroleum product price hikes.
KPC Managing Director Joe Sang reiterated the company's remarkable journey over the past five decades.
He highlighted the significant transformation of KPC from a company primarily focused on transporting petroleum products from Mombasa to Nairobi to a diversified entity contributing significantly to Kenya's economic development.
"KPC boasts an asset portfolio of Sh129 billion. Our performance is equally enviable. The Company recorded a 23 per cent Profit Before Tax of Sh7.5 billion for the year ending June 2023 compared to Sh6.2 billion achieved for the year ending June 2022," Sang stated.
Sang also emphasized the crucial role played by KPC's extensive 1,342km countrywide pipeline network, with a throughput of 8.1 million cubic meters.
This network ensures the effective fueling of Kenya's economic activities.
In a bid to further enhance pipeline operations, KPC recently implemented parallel pumping for Line V (Mombasa to Nairobi), achieving a remarkable 37 per cent increase in the flow rate.
"We upgraded the pumping mechanism to pump from two pumps, as opposed to one, and achieved a 37 per cent increase in the flow rate from 1,100 M3/hr to 1,300 M3/hr," Sang revealed.
This enhancement he said enables the loading of an additional 7 trucks each hour through Line V, ensuring more efficient petroleum distribution.
To celebrate its 50th anniversary, KPC has launched a four-month campaign titled "KPC@50: 50 years of transforming lives and building regional economies."
This campaign aims to bring together KPC's stakeholders and reflects the company's commitment to continued growth and development.
In the future, KPC plans to intensify its business diversification projects, including providing Fibre Optic Cables services, expanding storage and transportation of LPG across the country, and engaging in community outreach activities.
As Kenya Pipeline Company marks its golden jubilee, it remains a cornerstone of Kenya's energy sector, committed to ensuring energy security, economic growth, and innovation in the country.
With a legacy of 50 years of dedication and progress, KPC looks forward to a promising future as a leading player in Kenya's energy landscape.