Kenya Pipeline Corporation (KPC) continues to demonstrate robust financial performance and operational efficiency, having remitted Sh7 billion to the National Treasury for the fiscal year ending June 30, 2024.
In addition to its strong financial results, the corporation surpassed global standards in pipeline transportation efficiency, reducing product losses from the industry benchmark of 0.25 percent to just 0.06 percent.
During the ongoing performance evaluation for Ministries, Departments, and Agencies (MDAs) for the 2023/2024 fiscal year, KPC Managing Director Joe Sang reaffirmed the company’s commitment to its Vision 2025 strategy.
This strategy aims to position KPC as Africa’s leading oil and gas company while solidifying Kenya’s status as a regional energy hub.
“In the year under review, we achieved a 20 percent growth in profit before tax, reaching Ksh.10.05 billion compared to Ksh.7.6 billion the previous year. We have been able to pay the National Treasury dividends to the tune of Sh7 billion,” said Mr. Sang.
He emphasized that KPC’s ability to remit these dividends reflects its significant contribution to national development.
Deputy Chief of Staff for Performance and Delivery Management, Eliud Owalo, highlighted KPC’s vital role in Kenya’s energy sector and its alignment with the Bottom-Up Economic Transformation Agenda (BETA).
“KPC is an integral player in the Kenyan economy in the energy sector. We view KPC as one of those integral cogs in the delivery of our Bottom-Up Economic Transformation Agenda,” Owalo said.
He also underscored the importance of adopting global best practices to maintain the corporation’s competitive edge and ensure long-term growth.
Beyond petroleum transportation and storage, KPC is expanding its business portfolio with a focus on fiber optic cable development, growth of the Morendat Institute of Oil and Gas, and increased investments in liquefied petroleum gas (LPG).
“One of the major initiatives that the government has been undertaking in the recent past is to ensure that we have cooking gas in schools. Because KPC is the one that facilitates the entire supply chain, we envisage that you will conform to the expected deliverables in line with your mandate,” Owalo said.
KPC is also strengthening its export market across East Africa and working towards the full operationalization of the Kisumu Oil Jetty to enhance cost-effective petroleum transportation in the region.
The corporation’s long-term strategic priorities include acquiring and optimizing Kenya Petroleum and Oil Refineries Limited, expanding LPG import handling and storage facilities in Mombasa, and enhancing pipeline infrastructure capacity.
Additionally, KPC is intensifying efforts to manage pipeline product losses and rehabilitate key storage facilities, including the Port Reitz tanks.
According to Sang, KPC has made significant contributions to capacity building, surpassing its annual target for internship and attachment programs.
Out of a target of 900, the corporation engaged nearly 1,300 young professionals in the year under review, reinforcing its commitment to skills development in the energy sector.
Sang also called for government support in budget approvals, particularly for the ‘Buy Kenya, Build Kenya’ initiative.
