NAIROBI, Kenya – The Ministry of Energy has unveiled significant upgrades to fuel supply and storage infrastructure aimed at improving logistics and boosting efficiency within the sector.
Cabinet Secretary for Energy, Opiyo Wandayi, announced these changes during a forum with Oil Marketing Companies (OMCs) CEOs and industry leaders, underscoring the government’s commitment to streamlining fuel distribution in Kenya and the wider East African region.
Key among the developments is the integration of the Kenya Pipeline Company (KPC) and the Kenya Revenue Authority’s (KRA) SAP and iCMS systems, which is expected to drastically reduce truck turnaround times at KPC depots.
According to Wandayi, the integration will improve the speed and efficiency of fuel distribution, ultimately lowering operational costs and enhancing service delivery.
The introduction of Smart Gates at KPC facilities is another crucial part of the upgrade.
Dr. Lilian Nyawanda, KRA Commissioner of Customs and Border Control, confirmed that the system went live on April 6, 2025.
She emphasized that the new system would revolutionize fuel logistics across East Africa by improving transparency, process predictability, and visibility.
Additionally, automation of tax payments and clearance processes will reduce business costs and facilitate smoother operations.
Dr. Nyawanda also warned OMCs that delays caused by overnight truck operations would result in penalties under the Transport Service Agreement.
Further strengthening the fuel supply chain, KPC Managing Director Joe Sang highlighted the completion of the Port Reitz-Kipevu Oil Terminal (KOT) 2 connectivity project.
This project involved the rehabilitation of five crude oil tanks to store Automotive Gas Oil (AGO) and the installation of pumps, pipelines, and ICT systems that link berthing ships directly to onshore storage tanks.
These upgrades add 100 million litres of fuel capacity to KPC’s storage system, which is expected to reduce demurrage charges that have traditionally been passed on to consumers.
Sang emphasized that the additional storage capacity will also speed up vessel turnaround times, significantly improving fuel supply efficiency.
Peter Murungi, Chairperson of the Petroleum Institute of East Africa, praised KPC’s efforts, noting the company’s modernization of fuel storage and transportation as a major step forward.
“KPC has done a fantastic job in fuel storage and transportation,” Murungi said, pledging full support for the ongoing initiatives.
These advancements are expected to enhance Kenya’s standing as a regional fuel distribution hub, positioning the country as a leader in East Africa’s oil and gas sector.
