Kenya Pipeline Company (KPC) said it haddreduced the cost of using its depots in Western Kenya by firms exporting petroleum products.
The move, the State corporation said, is in a bid to lure back regional oil marketing firms that had ditched Kenya, opting for the Tanzanian route to transport their petroleum products.
The pipeline company said it had introduced a 30 per cent discount on transit products stored at its Western Kenya depots.
This means oil marketers will now pay a promotional tariff of $41.55 (Sh4,279) per 1,000 litres from the current $59.32 (Sh6,109) per 1,000 litres. The new tariff will take effect on April 1.
Neighbouring countries, especially Rwanda, Burundi and Democratic Republic of Congo, have in the past raised concerns on challenges encountered when using Kenya as an import route. Challenges cited include high cost, delay and lengthy processes in clearing products in Mombasa. Tanzania is also a relatively shorter import route for the three countries, making it more attractive to oil marketers operating in these countries.
KPC Managing Director Joe Sang said the move will help the State-owned pipeline company recapture the lost regional petroleum market share. “We have lost our market share, especially in Rwanda and Burundi. We must get this rightful share back and this calls for proactive and strategic thinking. We not only want to regain the lost market, but also extend our operations into new frontiers in the region,” said Mr Sang.
KPC has invested heavily in increasing its capacity to serve both local and export markets. Among the investments geared towards increasing product availability in Western Kenya include the commissioning of the Sinendet-Kisumu parallel pipeline (Line 6) in April last year.