Energy and Petroleum Cabinet Secretary Hon. Opiyo Wandayi has said the government is considering expunging KPC off the list of institutions earmarked for privatisation.The CS said the strategic nature of KPC coupled with its immense regional impact demerits the privatisation plans.
The Cabinet Secretary said placing KPC in the hands of privateers would amount to ceeding certain national and regional aspirations.
“As one of the most profitable government entities, with admirable well thought out divestures, it would be imprudent to let go of the institution now,” he said.
The CS praised KPC’s Board and Management for the enviable stewardship of the organisation to profitability.
He said the good returns this year to the national treasury was a testimony that the inherent potential is being sweated. “There is, however, room for improvement, and the board has assured me of even better returns next year,” he added.
On the regional market, Managing Director Joe Sang said 90% of Uganda market is served by KPC. Through Uganda National Oil Company (UNOC), Uganda imports through the port of Mombasa are transported through KPC.
Sang said plans are at an advanced stage to fully onboard Rwanda. “Once negotiations are over, we will sign a memorandum of understanding with Rwanda so that we fully onboard them to our facility,” he added.
On operational costs, Sang said studies are underway to ascertain if KPC operations could be fully solarised. He said the company headquarters is currently powered by solar, thereby cutting down the costs by 60%. KPC pays approximately between Shs.200 & 300 million per month for power consumption. This he said needs to be addressed.
The two leaders were speaking during the CS inaugural visit to KPC headquarters in industrial area Nairobi. Senior ministry officials, KPC board, and senior management staff graced the occasion.
