The Kenya Oil Refinery facility in Mombasa will be converted into a bulk Liquefied petroleum gas (LPG) storage utility upon completion of an acquisition process by Kenya Pipeline Corporation (KPC) through transfer of shares.

This development comes as the government strives to establish a bulk LPG import handling and storage utility at the Kenya Petroleum Refineries Limited (KPRL) site in Mombasa County.

KPC is currently engaged in consultations with the ministry, KPRL, and the Mombasa County Government with finalization expected in the coming weeks.

Speaking at a press conference hosted at the Mombasa governor’s office, Energy and Petroleum Cabinet Secretary Davis Chirchir said the acquisition will be finalized in the next few weeks.

“The Cabinet-approved acquisition will see KPC taking over KPRL through a share transfer, without any financial exchange,” he said.

It is hoped this move will stabilise the nation’s petroleum product supply and reduce costs by minimizing demurrage expenses.

“This acquisition will enable us to optimise the 370-acre beachfront KPRL facility, creating bulk LPG import handling and storage capabilities. This initiative seeks to raise Kenya’s LPG consumption from 7 kg per capita to 10 kg within the next 3 to 5 years,” the CS added.

Deal is also expected to boost Kenya Kwanza government’s bid to offer affordable LPG countrywide.
The merger of these government entities is anticipated to augment the nation’s storage capacity, facilitate the planned enhancement of the pipeline system, manage petroleum product price fluctuations, and establish Mombasa as a dominant trading centre within East Africa.