Kipevu Oil terminal to enhance supply, cost stability of petroleum products
Kenya will double the capacity of handling petroleum products when the Ksh.40 billion New Kipevu oil terminal becomes fully operational later this month.
The new terminal, which is an offshore facility will handle 4 ships each carrying 190 million liters of fuel making it the biggest in Africa.
The project consists of 4 berths whose total length is 770 meters and one work boat wharf at the area for landing facilities.
Speaking during the inspection, President Kenyatta, who was accompanied by visiting Chinese Foreign Affairs Minister Wang Yi, said the new offshore Kipevu Oil Terminal which is currently 96 percent complete will enhance supply and cost stability of petroleum products in Kenya and the region.
“The old Kipevu Oil Terminal which for many years we have struggled with, was not able to meet the demands of increasing population, to meet the demands of the growing economy. We needed this facility to be able to cater for those demands and China was there when we asked for partnership in developing it,” said the President.
President Kenyatta noted that various infrastructural projects implemented with the support of China had strengthened Kenya’s economy.
“Our partnership with China is not a partnership based on China telling us what to do. It is a partnership of friends, working together to meet Kenya’s socio-economic agenda.”
The new jetty will enhance the supply and ensure price stability of petroleum products in Kenya and the region by replacing the 50-year old onshore Kipevu Oil Terminal (KOT).
On his part, Chinese state Councilor and minister of foreign affairs Wang Yi lauded the Social- Economic partnership between the two states which marked 600 years ago contributing immensely through economic development projects.
The new terminal will go a long way in reducing fuel prices and making the precious commodity available in the market, hence uplifting economic development.
On Standard Gauge Railway (SGR), the Head of State said it has significantly lowered the cost of cargo freight saying the price of transporting a container of tea from Nairobi to Mombasa had reduced from Ksh.60,000 by road to Ksh.17,000 on the modern railway line.
“Many said there was no need to improve the railway linking Mombasa to Nairobi and ultimate to Kisumu, Malaba and our neighbouring countries. Today millions and millions of Kenyans have benefited through the reduction in cost of travel between Nairobi and Mombasa.
“During this Covid-19 period thousands of Kenyans were able to take advantage of the SGR to travel to Mombasa and to ensure that at least our hotels down here were not closed and our people were kept in employment,” President Kenyatta said.
Recently, Kenya Tea Development Agency (KTDA) managed factories partnered with SGR
to transport their produce via the line from Nairobi to the Port of Mombasa for onward export.