Southern Engineering Company (SECO) has scooped a bid from Kenya Pipeline Company (KPC) to construct a petroleum product facility in Kisumu. Construction of the Kshs 1.69 billion facility will commence immediately and will be completed in six months. The local engineering firm will fund the project.
The oil jetty is a critical project in re-establishing the country as a preferred import route for oil products to countries across the Eastern African region.
The project will be crucial in easing movement of petroleum products across the border and will aid the state agency recover market share that it had lost to Tanzania’s central corridor. Also, it will support integrated marine fuel transportation in the region. Recently, Energy Cabinet Secretary, Charles Keter launched KPC promotional tariff for oil marketing companies to recapture the regional market.
Kisumu receives about 60 per cent of the country’s petroleum products, supplied to western region and East African countries including parts of Tanzania, DRC, Rwanda, Burundi and South Sudan.
In January 2017, KPC invited bids for the oil jetty construction in Lake Victoria. The winning bidder was to bring clarity to designs, capacity and haulage of the pier to load and safely transport fuel across the lake using properly certified barges and ships. The jetty is expected to boost throughput in Kisumu by 1 million litres a year in phase 1 and up to 3 million litres per year by 2028. KPC is undertaking several projects to provide easy in oil transportation. For example, the Line V construction, which is the safest way to transport fuel, will see 7200 trucks removed from the road. It has also completed construction of a 10 inch, 122km oil pipeline from Sinendet to Kisumu.