Kenya Pipeline Company Limited has agreed to resolve key issues that affect the supply of petroleum products to Uganda.
This follows sustained concerns mainly about the handling and congestion efficiency issues at Mombasa Port and the inland ports, impacting timelines and costs.
At a meeting hosted by KPC Managing Director Joe Sang, featuring more than 100 oil marketing companies (OMCs) operating in Uganda, the KPC promised to respond to the grievances.
“We are here to listen to you,” Sang said during his opening remarks.
“Your feedback will help us become better as we continuously address your concerns.”
KPC currently handles approximately 90 percent of petroleum products destined for the Ugandan market.
Sang outlined key initiatives aimed at boosting operational efficiency across the petroleum supply chain, including increased operational flexibility at Western Kenya terminals.
He cited the expanded storage capacity of 110 million litres at Port Reitz.
The addition of a 10-million-litre AGO (diesel) tank at Kisumu was also mentioned.
The enhancement of Line 4’s flow rate from 350,000 litres to 510,000 litres per hour was part of immediate action steps.
To further improve cooperation and communication between the pipeline company and the marketers and other stakeholders in Uganda, KPC plans to open a liaison office in Uganda by January 2026.
This office should swiftly resolve market issues.
Another key project is the ongoing construction of the Eldoret–Kampala–Kigali pipeline project.
This project is expected to ultimately reduce petroleum costs for consumers across the region.
The OMCs were also urged to utilise the newly commissioned Light Petroleum Gas (LPG) truck-loading facility at Kenya Petroleum Refineries Limited (KPRL).
Consultations are ongoing with private partners to construct a common-user LPG facility soon.
Mathias Katamba, Uganda National Oil Company (UNOC) Chairman, hailed KPC as a “pivotal partner” in the regional petroleum supply chain.
He described KPC as a key driver of Uganda’s economic development.
UNOC Chief Executive Officer, Proscovia Nabbanja, noted that over 2.6 billion litres of product have passed through KPC’s infrastructure en route to Uganda annually.
This figure is expected to rise as the economy continues to grow.
She urged OMCs to ensure the timely evacuation of product to prevent congestion in KPC’s pipeline infrastructure.
Nabbanja also called for the creation of a “senior-level” task force to enhance visibility of ground-level challenges.
These challenges include the need for better training of Ugandan oil marketers on KPC-KRA integration.
This followed a tour of oil terminals in Uganda by Kenyan sector leaders earlier in the week, led by James Opiyo Wandayi, Energy and Petroleum Cabinet Secretary.
The minister lauded Kenya Pipeline’s efforts in promoting regional integration through infrastructure development.
He gave the example of the Kisumu Oil Jetty, which he said had contributed immensely to the vision of joined borders for thriving communities and society.
A third barge is being introduced at Kisumu to transport refined petroleum products from the Kisumu Oil Jetty to the Mahathi Infra Uganda Limited terminal.
This is expected to catalyse development in the supply chain.
Wandayi said the move would save the country’s road maintenance costs.
The environment would also benefit, as would the reduction of costly petroleum tanker traffic accidents.
The move would create efficiencies that would then be passed on to the end-user.
“One barge transports 4.5 million litres of product, equivalent to approximately 150 trucks off the roads,” he said.
“This is beneficial to the county’s investment plan.”
KPC MD, Sang, said the partnership with Mahathi had attracted the Oil Majors to use the Kisumu Oil Jetty.
This has enhanced business for the facility.
So far, some 470 million litres of product have been transported across the lake from the jetty since it was commissioned in 2023.
Sang agreed to the request by Mahathi Infra to enhance capacity in the Western Region, especially in Kisumu.
The goal is to ramp up the volumes to meet rising demand from Uganda and the wider regional market, including Rwanda and the Democratic Republic of Congo.
Source: URN
