Kenya Pipeline Company

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Kenya Pipeline Company
IndustryEnergy and Petroleum
Incorporated1978
Founded1973
HeadquartersKenpipe Plaza, Sekondi Road, ,
Key people
Joe Sang, Managing Director Faith Boinett, Chairperson of the Board of Directors
ProductsWhite petroleum
ServicesStorage and transportation of petroleum
Ksh.10billion (gross) (2023/2014)
Total assets Ksh.120billion (2025)
OwnerGovernment of Kenya
Number of employees
500 - 1000
Website www.kpc.co.ke   OOjs UI icon edit-ltr-progressive.svg

The Kenya Pipeline Company was incorporated on 6 September 1973 and started commercial operations in 1978. It is a state corporation that manages petroleum products through its transport system and oil depot network. [1]

Contents

The company operates under the Ministry of Energy.

Kenya Pipeline Company operates a pipeline system for transportation of refined petroleum products from Mombasa to Nairobi and western Kenya towns of Nakuru, Kisumu and Eldoret. Working closely with the National Oil Corporation of Kenya, KPC operates five storage and distribution depots for conventional petroleum products, located in Eldoret, Kisumu, Mombasa, Nairobi and Nakuru. Depots are fed by domestic-manufactured product from the Kenya Petroleum Refinery near Nairobi and imported, refined petroleum product from the Kipevu Oil Storage Facility near Mombasa. The company operates two aviation fuel depots at Jomo Kenyatta Airport, Nairobi, and Moi International Airport, Mombasa.

In collaboration with the Government, KPC facilitates the implementation of Government policies:

Unlike some state corporations, KPC does not depend on government subsidies, but is a source of revenue to the government in terms of dividends and taxes. It is supported by major petroleum companies which are signatories to the network, including Dalbit Petroleum. [3]

In 2011, the government of newly independent South Sudan expressed interest to building a pipeline connecting the oil fields in that country to the existing South-Eldoret-Mombasa pipeline in Kenya. [4]

In 2016, it was announced that KPC has secured $350 million to install a new 865-kilometers long pipeline from Mombasa to Nairobi. [5] KPC is the largest consumer of electricity in Kenya. [6]

In November 2023, Kenya pipeline was listed among 11 other state corporations that were to be privatised by the Kenyan government.

In 2024 the company recorded a gross profit of KES10 billions as for the financial year 2023/2025 [7] . The company was valued at Ksh,120Billion by a government estimate in 2025 [8]

Privatization

In October this year, the Privatization Commission formally issued a notice announcing the proposed privatization of the Kenya Pipeline Company after approval by parliament. [9] This move was made in line with the government's plan to unlock fulL potential of State Owned Enterprises, increase revenue collection and lower fiscal burden in running the corporations. The company will thus be privatized through an IPO on the Nairobi Securities Exchange [10] [11]

Accidents

Corruption scandal

On 7 December 2018, Joe Sang, the CEO of the Kenya Pipeline Company (KPC), was arrested with four other senior officials in connection with the loss of an unspecified amount of money during the construction of an oil jetty in the western city of Kisumu. [12] [13]

See also

References

  1. "Kenya Pipeline Company" . Retrieved 29 May 2020.
  2. "How Kenya Pipeline Has Reshaped Kenya's Energy Infrastructure". The Business Watch. 22 April 2025.
  3. "Dalbit Petroleum Kenya | About Us". www.dalbitpetroleum.com. Archived from the original on 19 April 2017. Retrieved 18 April 2017.
  4. "South Sudan to link to Kenya oil pipeline". Reuters. 6 July 2011. Archived from the original on 14 May 2012. Retrieved 19 October 2011.
  5. "Kenya Will Begin Constructing Its Crude Oil Pipeline in 2018". Bloomberg.com. 29 June 2016. Retrieved 18 April 2017.
  6. Kajilwa, Graham (18 December 2017). "Why Bamburi cement put off mega plans for alternative solar energy". The Standard. Retrieved 18 December 2017.
  7. "KPC Reports a Sh10 Billion profit, Driven by Revenue Growth". KBC. 14 March 2025.
  8. "Estimates put Kenya Pipeline Company value at 120b". Capital FM. 12 August 2024.
  9. "Kenyan Parliament Approves Privatization of State Pipeline Company to Raise $769 million". Pipeline Technology Journal.
  10. "State issues notice for privatization of Kenya Pipeline Company". The Star.
  11. "State Announces Privatisation of Kenya Pipeline Company Through IPO". Kenyans.co.ke.
  12. Mwangi, Denis (7 December 2018). "Kenya Pipeline CEO Joe Sang Arrested". Kenyans.co.ke. Retrieved 9 December 2020.
  13. "UPDATE 1-Kenya Pipeline Company's CEO arrested over loss of funds". Reuters. 7 December 2018. Retrieved 9 December 2020.[ dead link ]