The Ministry of Energy has announced
new fuel supply and storage upgrades aimed at improving logistics and
efficiency.
Energy Cabinet Secretary J. Opiyo
Wandayi said the Kenya Pipeline Company (KPC) and Kenya Revenue Authority (KRA)
have integrated their SAP and iCMS systems.
The CS spoke during an oil and gas
captains of industry forum that convened Oil Marketing Companies (OMCs) CEOs and
leaders of industry associations.
The integration is expected to halve
truck turnaround times at KPC depots, boosting fuel distribution efficiency.
KRA has also operationalised Smart
Gates to further improve throughput at KPC facilities across the country.
“The system went live on April 6,
2025,” said Dr. Lilian Nyawanda, KRA Commissioner of Customs and Border
Control.
She said the system will
“revolutionise fuel logistics in East Africa through enhanced transparency,
visibility and process predictability.”
Dr. Nyawanda added that the automation
of tax payment and clearance processes will reduce business and tax costs.
KRA will align working hours with
KPC depot operations to support early and late fuel loading.
“OMCs causing overnight truck delays
will face penalties under the Transport Service Agreement,” Dr. Nyawanda
warned.
KPC Managing Director Joe Sang
confirmed completion of the Port Reitz-Kipevu Oil Terminal (KOT) 2 connectivity
project.
The project included the rehabilitation
of five crude oil tanks for the storage of Automotive Gas Oil (AGO).
It also involved installing pumps,
pipelines, electrical and ICT systems linking berthing ships to onshore storage
tanks.
“Kenya faces high demurrage costs
due to limited ullage at Kipevu Oil Storage Facility (KOSF),” said Sang.
He said the new storage adds 100
million litres of fuel capacity to KPC’s system.
“This will reduce demurrage charges
passed on to consumers and speed up vessel turnaround,” Sang added.
Petroleum Institute of East Africa
Chairperson Peter Murungi praised KPC’s efforts to modernise fuel supply
systems.
“KPC has done a fantastic job in
fuel storage and transportation,” said Murungi. “We pledge full support.”
The projects are expected to boost
Kenya’s position as a regional fuel distribution hub in East Africa.
