KPC invested Sh60 billion in last five years
Kenya Pipeline Company (KPC) completed investments amounting to Sh60 billion in the last five years increasing it’s dividends to the exchequer
According to outgoing board chair John Ngumi, the new Mombasa-Nairobi pipeline (Line 5), Sinendet-Kisumu pipeline (Line 6), additional storage tanks in Nairobi terminal, together with the Eldoret and Kisumu bottom loading facilities are some of the new assets added during that period.
“We have seen KPC dramatically raise its financial game over the last five years.
We managed to complete and bring into operation massive investments amounting to nearly Sh60 billion,” Ngumi said.
While agreeing that the corporation has had it’s fair share of challenges, Ngumi revealed that in 2015, KPC took one of the biggest corporate loans in Kenya $350 million (Sh35 billion) for the construction of Line 5, on the strength of the corporations balance sheet.
Dividends
“The lenders did not ask for or need a government guarantee. We have continued servicing that loan satisfactorily to the tune of nearly Sh2 billion every quarter,” he said.
KPC paid the Government Sh11.8 billion in dividends this year alone.
Ngumi said KPC is set to perform a much bigger role as a strategic state agency in the oil and gas sector having expanded its operational efficiency, after President Uhuru Kenyatta issued an Executive Order establishing the Kenya Transport and Logistics Network -KTLN.
The move sets a framework for the management, coordination and integration of public port, railway and pipeline services.
Former board member Rita Okuthe takes over Ngumi’s position as Ngumi moves to take his new position as Industrial and Commercial Development Corporation (ICDC) co-chair.
