The Energy and Petroleum Regulatory Authority (EPRA) concluded its public participation exercise today in Nairobi, hosting key stakeholders to deliberate on proposed adjustments to tariffs for pipeline transportation and secondary storage.
This final engagement follows a series of public hearings held across the country in Nakuru, Garissa, Mombasa, Eldoret, and Kisumu. The consultations were prompted by an application from the Kenya Pipeline Company (KPC) seeking to increase tariffs. KPC states the additional revenue is crucial for funding new projects and essential infrastructural maintenance.
KPC argues that these investments will significantly enhance its capacity to meet the surging demand for petroleum products, both domestically in Kenya and from neighbouring countries that rely on Kenya as a vital transit route.
EPRA Director General Daniel Kiptoo Bargoria confirmed the regulator’s objective in considering the application. He noted that KPC’s prevailing tariffs, approved on September 28, 2022, for a three-year period, effectively lapsed on June 30, 2025.
“Our objective remains to balance cost recovery for essential infrastructure installation and operations with the need to maintain affordable and reliable petroleum products for consumers,” said Mr. Kiptoo. The proposed tariffs, he explained, aim to strike a balance between allowing KPC to recover costs for critical investments and ensuring operational sustainability.
The DG highlighted that the funds sought by KPC are earmarked for several significant capital projects, including:
- Capacity Enhancement: Upgrading the Nairobi-Eldoret petroleum pipeline.
- Western Kenya Upgrades: Constructing new storage tanks and performing flowrate upgrades in Western Kenya.
- System Modernization: Replacing the ageing ERP system and establishing a modern Data and Control Centre.
- Safety and Efficiency: Upgrading obsolete Automatic Tank Gauging (ATG) systems.
KPC, the state-owned oil pipeline operator, manages a 1,342 km network that transports petroleum products from Mombasa to inland depots in Nairobi, Nakuru, Eldoret, and Kisumu. The final sale prices to licensed Oil Marketing Companies (OMCs) are ultimately regulated by EPRA’s approved tariffs.