The Cabinet has given the Kenya Pipeline Company (KPC) the go-ahead to acquire Kenya Petroleum Refineries Limited.
The Cabinet Office, the acquisition of the country’s strategic petroleum refinery will enhance petroleum fuel supply chain which is a major contributor to rising fuel prices.
“This State intervention is expected to enhance petroleum supply chain infrastructure and thereby result in security of supply and cost-efficiency through reduced demurrage costs and enhanced
penetration of LPG usage in the country through the development of LPG bulk import handling and storage facilities,” a dispatch from the office stated.
The acquisition of the facility which has remained underutilized with only the storages working is further backed to foster synergy in the petroleum value chain by optimizing the use of our
existing downstream petroleum infrastructure.
After ceasing crude oil processing, KPRL signed a deal with KPC to use its storage facilities which can handle LPG, premium petrol, dual purpose kerosene, automotive gasoil and fuel oil.
The Tuesday sitting also approved the vacation of the 30pc minimum threshold for local shareholding in foreign ICT firms as contained in the ICT Policy.
“The policy shift is geared towards facilitating technology and
knowledge transfer as well as to aid the expansion of the digital economy by positioning the country for increased foreign investments in technology as envisioned in the Administration’s Bottom-Up Economic Transformation Agenda (BETA).”
