NAIROBI, Kenya, Feb 1 – The Kenya Pipeline Corporation (KPC) has remitted Sh7 billion in dividends to the National Treasury for the fiscal year ending June 30, 2024, reflecting strong financial performance and operational efficiency.
The corporation also outperformed global benchmarks for product loss in pipeline transportation, reducing losses from the industry standard of 0.25 percent to 0.06 percent.
Speaking during the ongoing performance evaluation for Ministries, Departments, and Agencies (MDAs) at KPC headquarters, Managing Director Joe Sang reaffirmed the corporation’s commitment to its Vision 2025 strategy.
The plan aims to position KPC as Africa’s leading oil and gas company while establishing Kenya as a regional energy hub.
“We achieved a 20% growth in profit before tax, reaching Ksh.10.05 billion compared to Ksh.7.6 billion the previous year. As a result, we have remitted Ksh.7 billion in dividends to the National Treasury,” Sang said.
He emphasized that the dividend payout underscores KPC’s contribution to national development.
Deputy Chief of Staff for Performance and Delivery Management, Eliud Owalo, highlighted KPC’s crucial role in Kenya’s energy sector and its alignment with the Bottom-Up Economic Transformation Agenda (BETA).
He stressed the importance of benchmarking against global best practices to maintain competitiveness and ensure sustainable growth.
“KPC is a key player in our economy’s energy sector. We see it as an essential driver of the Bottom-Up Economic Transformation Agenda,” Owalo stated.
Expansion and Strategic Growth
Beyond petroleum transportation and storage, KPC is expanding its business portfolio. Key initiatives include fiber optic cable expansion, the growth of the Morendat Institute of Oil and Gas, and increased investment in liquefied petroleum gas (LPG).
“The government has prioritized ensuring cooking gas is available in schools. Since KPC facilitates the entire supply chain, we expect it to meet these deliverables in line with its mandate,” Owalo added.
The corporation is also strengthening its export market across East Africa and working to fully operationalize the Kisumu Oil Jetty, enhancing cost-effective petroleum transportation in the region.
Its long-term plans include acquiring and optimizing Kenya Petroleum and Oil Refineries Limited, expanding LPG import handling and storage facilities in Mombasa, and increasing pipeline infrastructure capacity.
Additionally, KPC is prioritizing efforts to minimize pipeline product losses and rehabilitate key storage facilities, including Port Reitz tanks.
Investment in Skills Development
KPC has surpassed its annual target for internship and attachment programs, engaging nearly 1,300 young professionals against a target of 900 in the year under review.
Sang said this investment in capacity building reinforces the corporation’s commitment to skills development in the energy sector.
He 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 program, budget constraints due to austerity measures have affected its implementation.
“We have clear targets under the Buy Kenya, Build Kenya initiative, but reduced budgets have impacted execution. We seek support to fully realize this commitment,” Sang said.
Under its Vision 2025 strategic plan, KPC aims to achieve an annual turnover of Sh150 billion by the end of this year.
