The energy sector in Kenya is managed by the Ministry of Energy and Petroleum (MoEP) which generates policies that are designed to create an enabling environment for efficient operation and growth of the sector. It sets the strategic direction for the growth of the sector and provides a long term vision for all sector players.
Kenya Vision 2030 and the Second Medium Plan 2013-2017 identify energy as one of the infrastructure enablers for transformation into “a newly-industrialising, middle-income country providing a high quality of life to all its citizens in a clean and secure environment”. Access to competitively-priced, reliable, quality, safe and sustainable energy is essential for achievement of the Vision. The Ministry of Energy and Petroleum’s functions as detailed in the Executive Order No. 2/2013 of May 2013 on the Organisation of the Government of the Republic of Kenya are:-
- Energy Policy and Development.
- Hydropower Development.
- Geothermal Exploration and Development.
- Thermal Power Development.
- Oil and Gas Exploration.
- Oil/Gas and Minerals Sector Capacity Development.
- Rural Electrification Programme.
- Petroleum Products, Import/Export/Marketing Policy Management.
- Renewable Energy Promotion and Development
- Energy Regulation, Security and Conservation.
- Fossil Fuels Exploration and Development.
The institutional structure of the energy sector in Kenya comprises the Ministry of Energy and Petroleum (MoEP), Energy and Petroleum Regulatory Authority (EPRA), Kenya Pipeline Company (KPC), Kenya Electricity Generating Company (KenGen), Kenya Power and Lighting Company, the Rural Electrification Authority (REA), Kenya Electricity Transmission Company (KETRACO), Geothermal Development Company (GDC), Kenya Nuclear Electricity Board (KNEB), National Oil Corporation of Kenya (NOCK), Kenya Petroleum Refineries Limited, private sector actors and energy service users/customers.
The Ministry has five Directorates namely,
- Petroleum Energy,
- Renewable Energy,
- Electrical Power,
- General Administration
- Support Services to facilitate delivery of its mandate.
The ministry has the following as the board of directors
- Chairperson; Rita Okuthe
- Managing Director; Dr Macharia Irungu
- Principal Secretary State Department of Petroleum; Andrew Kamau, PS
- Director; Jinaro Kibet
- Director; Maj(Rtd) Iltasayon Neepe
- Director Wahome Gitonga
- Alternate Director to the PS, Ministry of Petroleum and Mining Chege Mwangi
- Director Ken Wathome
- Director Elsie Mbugua
- Alternate Director to the CS, Ministry of National Treasury & Planning Amos Gathecha
- Director James Shiganga
- Alternate Director to the CS, Representative of Inspector General State Corporation Chrisologus Makokha
- Representative of Attorney General Sophia Sitati
The development of the oil pipeline in Kenya began when the Government established the Kenya Pipeline Company (KPC) in 1973. The Company was charged with the task of constructing a refined oil pipeline system and transporting the petroleum products from Mombasa to the hinterland. Extensive feasibility studies undertaken, prior to the establishment of the Company, had revealed that a pipeline system was the most suitable mode of transporting petroleum products to the hinterland in terms of cost and convenience.
- The pipeline system currently consists of a network of 1,792 km of pipelines running from Mombasa through Nairobi to the Western Kenya towns of Nakuru, Eldoret and Kisumu. The first 450km 14-inch diameter pipeline was completed in 1978 from Mombasa to Nairobi and an additional 446km 8/6-inch diameter from Nairobi to Western Kenya was constructed and completed in 1994. In 2011 a 325km 14-inch diameter parallel pipeline from Nairobi to Eldoret was commissioned, and another 121km 10-inch diameter parallel pipeline from Sinendet to Kisumu was commissioned in 2016. The latest addition was the 450km 20-inch diameter parallel pipeline from Mombasa to Nairobi commissioned in June 2018.
- KPC has petroleum products storage facilities at its depots located in Nairobi and the major towns of Mombasa, Nakuru, Eldoret and Kisumu with a total capacity of 417,980m3. The Company manages and operates the 326,233m3 imports storage facility at Kipevu (KOSF) and another 143,014m3 under a lease arrangement with the Kenya Petroleum Refineries Limited (KPRL).
- To date, KPC has cost effectively, efficiently and safely transported petroleum products through the pipeline, for consumption in Kenya and the neighboring countries which include Uganda, Rwanda, Burundi, Eastern Democratic Republic of Congo (DRC), South Sudan and Northern Tanzania. The pipeline throughput has increased from 800m3 in 1978 to 8.1millionm3 in 2020/21.
Corporate Social Investment
As a responsible corporate citizen, improving quality of lives of communities surrounding our installations is central to our corporate identity. We always endeavour to have positive impact on society through improving the lives of individuals, groups and communities. For us, reaching out to communities along the pipeline Right of Way and across the country through actively contributing to their socio-economic development constitutes our core agenda.
Our CSI programme focuses on the following:
- Special Groups Empowerment (The Inuka Program)
- Water & Sanitation
- Sports for Development
- Environmental Conservation
KPC plays a critical role in fostering development and growth in the region by ensuring sufficient and reliable supply of petroleum products. As the only ‘white oil’ pipeline, the entire region relies on the pipeline system for a cost effective and safe means of transporting petroleum products. The Company is most strategically positioned to deliver this mandate and must take the lead in partnering with the Regional Governments, industry and other key players to move the Region and the Company to the desired future.
The Strategic Plan for the period 2016-2025 dubbed ‘KPC Vision 2025’, is a transformational plan expected to transform the Company to A Premier Oil and Gas Company in the world and make Kenya the oil and gas hub in the region.
Last Update: January 14, 2022