Kenya Pipeline Company (KPC) has declared a notable achievement with a special dividend payout of Sh5 billion to the National Treasury for the fiscal year, concluding in June 2023.

This announcement comes on the heels of an impressive 21 per cent surge in KPC's profitability, reaching Sh7.6 billion in the financial year 2022/2023, a substantial increase from the previous year's Sh6.3 billion.

The decision to allocate dividends aligns with the government's fiscal directives, particularly emphasized by President William Ruto, aiming for more stringent financial management across government parastatals.

Notably, Ruto has mandated these enterprises, including KPC, to remit 80 per cent of their net profits to the Treasury promptly.

To ensure compliance and bolster financial health, Ruto has issued directives for CEOs of parastatals to slash recurrent budgets by 30 per cent, part of a broader strategy aimed at operational efficiency and fiscal discipline.

Moreover, Ruto has underscored a clear ultimatum for underperforming government institutions, warning of possible closure within three years if they fail to improve their financial standing.

In a demonstration of adaptability and commitment to public service, KPC has repurposed the decommissioned Mombasa-Nairobi oil pipeline to supply water to the coastal city.

This innovative approach not only addresses public needs but also exemplifies KPC's dedication beyond its traditional scope.

KPC's commitment to quality service is evident through the establishment of state-of-the-art laboratories, resulting in substantial annual savings of over Sh47 million.

The company intends to further optimize operations by outsourcing services to local firms, including state-owned entities, through its quality control department.

In line with recent privatization decisions, KPC has unveiled plans for the construction of a new pipeline connecting Mombasa to Nairobi.

This strategic move aims to enhance infrastructure and operational efficiency, aligning with President Ruto's mandate for sustainable operations within state enterprises.

The project is anticipated to have a positive long-term impact on KPC's profitability and operational effectiveness.