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The local company was awarded the contract after a competitive process that involved five other local and foreign bidders. Photo/FILE.

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Southern Engineering Company gets Sh1.7bn Kisumu Oil Jetty tender

The local company was awarded the contract after a competitive process that involved five other local and foreign bidders. Photo/FILE.

NAIROBI, Kenya, May 3 – Kenya Pipeline Company (KPC) has awarded the Sh1.7 billion contract for the construction of the Kisumu oil jetty to Southern Engineering Company (SECO).

The local company was awarded the contract after a competitive process that involved five other local and foreign bidders.

The firm is 60-year old engineering company, specialises in a range of land and marine, civil, mechanical and structural engineering and the flagship company of Alpha Group’s Marine Division.

SECO will commence construction the oil jetty this month and will take six months to complete the project.
KPC Managing Director, Joe Sang said the completion of Kisumu Oil Jetty will increase KPC’s competitive edge in the region as the leading oil transporter.

“The oil jetty’s target market will create integrated marine fuel transportation in the region, making it more efficient and commercially viable and reduce transportation costs for the oil marketing companies,” said Sang in a statement.

He said the Jetty project will also turn Kisumu into a focal point of oil and gas commerce in the region and one of the busiest inland ports in Africa boosting throughput in Kisumu by one billion litres a year in phase one and up to three billion litres per year by 2028.

“KPC remains focused on becoming a major regional player supporting regional growth by lowering the cost of doing business by ensuring that we operate a cost effective and highly efficient pipeline and related infrastructure system,” said Sang.

The move follows the completion of the new Sinendet-Kisumu Pipeline that has enhanced petroleum product availability in the Western Kenya and the export market of Uganda, Eastern DRC, Rwanda, Burundi and Northern Tanzania.

The line has increased product flow to Kisumu depot to 350,000 litres per hour from the previous 110,000 litres per hour increasing the country’s competitive edge in the region as a leading petroleum products exporter.

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