Committee threatens to censure KPC management
By Regina Manyara
The Parliamentary Committee on Energy has threatened to censure the management of the Kenya Pipeline Corporation over the 43 billion shillings Mombasa-Nairobi pipeline tender.
This is after top officials from the state parastatal snubbed its summons. The committee claims the tendering process was riddled with anomalies that top officials of Kenya Pipeline Corporation are yet to respond to.
Among the major challenges facing Kenya Pipeline Corporation currently, is the single jetty at Mombasa, which is costly and time consuming, as oil tankers have to queue to offload crude oil and in a time consuming activity.
That constraint has led to increased cost of demurrage, which is passed on to consumers.
Following this, the government has initiated efforts to rehabilitate the Mombasa to Nairobi Pipeline that was constructed in 1976.
However, controversy is brewing over the 43 billion shillings tendering process that was won by Zakhem International.
Zakhem allegedly scored a total of 95.49 in both technical and financial scores, flooring seven other companies who had participated in the bid.
The new pipeline is designed to meet petroleum products demand for the Eastern Africa Region up to the year 2044 while at the same time catering to Kenya’s oil and gas products that are set to increase with the recent discoveries.