Kenya Pipeline unveils new business plans to boost revenue

Kenya Pipeline Company (KPC) has unveiled five key business strategies aimed at boosting the company’s revenue and shareholders’ value.

Mr. Joe Sang, the company’s Group Managing Director, disclosed this in an interview with The African Business Fortune saying the transformational plan will see the oil giant scale up turnover to over Sh150 billion by the year 2025.

“The transformational vision is anchored on five key Strategic Pillars which will provide the bedrock to propel KPC deliver Vision 2025 whilst supporting Kenya achieve its set goals under Vision 2030,” said Sang.

Sang who was confirmed the MD in April this year said that the company would improve its operating margins, work on its reputation and geographic expansion to revitalize the firm’s balance sheet.

KPC targets to widen business focus that will see it enter into upstream, midstream and downstream activities of the Oil and Gas industry within the East and Central African region.

According to him, KPC will keenly focus on its customers and key stakeholders in strengthening relations as it prepares to rebrand as Africa’s premier Oil and Gas Company.

“From now going forward, we are very particular on how we are perceived by our customers and all the other stakeholders in the supply chain.

“This explains why we are having more interactive sessions with our customers than ever before. KPC is now more customer-focused and we are going to intensify the interaction between us and our customers.

“We have to listen and learn more from each other. This is what strategic governance is all about. Our customers should now know that we have delved into the key issues affecting service delivery at KPC’s terminals with attendant corrective measures to improve the business,” he said.

He said that the company will also aim to deliver clean, sustainable, affordable, reliable and secure energy as well as consistent supply of petroleum products in the local and regional markets in the wake of Kenya’s Oil and Gas discoveries.

“There’s need to infuse a high sense of efficiency in the entire ecosystem of the petroleum supply chain and for KPC to deliver on her mandate, we will need industry support.

As you may be aware, our sector supports the local economy to the tune of about 40 per cent and therefore what we do will certainly translate to the much needed economic dividends,” he said.

Kenya’s oil and gas discoveries are currently undergoing appraisal with more reserves being discovered.

The evaluation of the oil quality and quantity is being addressed by relevant authorities to assess the country’s prospects as far as the sub-sector is concerned.

The KPC boss confirmed that the company has good will from the Ministry of Energy and Petroleum and was banking on the sector’s policy and regulatory framework to encourage growth of the industry in ensuring that the right environment is in place for the sector to thrive.

KPC further said it would address copious challenges that have impacted its operations at the regional block.

The three critical areas the company has said it is keen to address include its lost market share, fuel adulteration which has seen it lock horns with the neighbouring countries especially Uganda who have raised concerns that the quality of the product they receive is not up to standard, as well as providing a 24-Hour Depot Operations.

“This calls for unparalleled efficiency in our terminals and that is why we are asking the OMCs to support our new initiative of longer loading hours in our depots. We are now opening our depots at 4am but OMCs are still coming to load at 8am and this is causing unnecessary congestion. This strategy of longer hours is supposed to catalyze more evacuation hence more business for all of us,” he said.