The Kenya Pipeline Corporation (KPC) has remitted KSh7 billion to the National Treasury for the fiscal year ending June 30, 2024, highlighting its strong financial performance and operational efficiency.
The corporation also surpassed global benchmarks for product loss in pipeline transportation, reducing losses from the industry standard of 0.25% to 0.06%.
Speaking at KPC headquarters during the ongoing performance evaluation for Ministries, Departments, and Agencies (MDAs) for the 2023/2024 fiscal year, KPC Managing Director Mr. Joe Sang reaffirmed the corporation’s commitment to its Vision 2025 strategy, which seeks to position KPC as Africa’s premier oil and gas company and establish Kenya as a regional energy hub.
He noted that the corporation registered a 20% growth in profit before tax, rising from Ksh.7.6 billion in the previous year to Ksh.10.05 billion in the year under review.
“In the year under review, we achieved a 20% 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 Sh.7 billion,” said Mr. Sang.
He emphasized that KPC’s ability to remit Ksh.7 billion in dividends to the National Treasury is a testament to the corporation’s contribution to national development.
Deputy Chief of Staff for Performance and Delivery Management, Mr. Eliud Owalo, emphasized KPC’s pivotal role in Kenya’s energy sector and its contribution to the Bottom-Up Economic Transformation Agenda (BETA).
He underscored the importance of benchmarking against global best practices to maintain the corporation’s competitive edge and ensure sustainable growth.
“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,” Mr. Owalo said.
Beyond petroleum transportation and storage, KPC is expanding its business portfolio, with a focus on fiber optic cable expansion, 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,” Mr. Owalo said.
The corporation is also strengthening its export market across East Africa and working to fully operationalize the Kisumu Oil Jetty to enhance cost-effective petroleum transportation across the region.
KPC’s long-term strategic focus includes the acquisition and optimization of Kenya Petroleum and Oil Refineries Limited, expansion of LPG import handling and storage facilities in Mombasa and enhancing pipeline infrastructure capacity.
The corporation is also prioritizing efforts to manage pipeline product losses and rehabilitate key storage facilities, including Port Reitz tanks.
Mr. Sang said the company had made significant contributions to capacity building, having surpassed its annual target for internship and attachment programs. Out of a target of 900, KPC 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. He noted that while KPC has specific targets under this initiative, budget constraints due to austerity measures have impacted its implementation.
He urged for increased support to ensure full realization of this program, which aims to boost local industries and enhance economic resilience.
“We have clear targets under the Buy Kenya, Build Kenya initiative, but reduced budgets due to austerity measures have impacted implementation. We seek support to fully realize this commitment,” Mr. Sang stated.
Under its Vision 2025 strategic plan, KPC is targeting an annual turnover of Ksh.150 billion by the end of this year, further solidifying its position as a regional energy powerhouse and a key driver of Kenya’s economic transformation.
