Kenya Pipeline Reports Sh10 Billion Profit, Cites Growth In Sales

The Kenya Pipeline Company (KPC) has posted a profit before tax of Sh10 billion for the 2023/2024 financial year, marking a 32% increase from the Sh7.6 billion recorded in the previous fiscal year.

The growth is attributed to a 15% rise in revenue, which climbed from Sh30.9 billion to Sh35.4 billion by June 2024. The increase was driven by higher sales volumes and favorable foreign exchange rates.

During the financial year, total throughput volumes rose by 6% to 9.1 million cubic meters (M³), up from 8.6 million M³ in the previous year.

While domestic throughput volumes saw a marginal increase of 0.1% to 4.5 million M³, export volumes surged by 12% to 4.7 million M³, reflecting KPC’s improved operational capacity and responsiveness to customer demand.

KPC Board Chairperson Faith Bett-Boinett attributed the strong performance to improved efficiency and a strategic realignment under the company’s Vision 2025 plan.

“This forward-thinking approach ensures that KPC remains aligned with the dynamic market environment and continues to fulfill its strategic imperatives. Our recent acquisition of ISO Integrated Management System (IMS) underscores our commitment to maintaining the highest standards of operational excellence,” she stated.

KPC Managing Director Joe Sang emphasized the company’s commitment to sustainable growth and innovation.

“Looking ahead, KPC will continue investing in people, infrastructure, and technology to exceed customer and stakeholder expectations. The next phase of our journey will be guided by principles of excellence, resilience, and vision,” Sang said.

He also confirmed that KPC has finalized the acquisition of Kenya Petroleum Refineries Limited (KPRL), which it had been operating under a lease agreement since 2017. This move, he noted, will strengthen Kenya’s position as a regional oil and gas hub by leveraging KPRL’s fuel storage infrastructure.

To enhance operational efficiency, KPC is investing in key capital projects such as the Leak and Intrusion Detection System, the Supervisory Control and Data Acquisition (SCADA) System, the Nairobi-Eldoret (Line IV) Capacity Enhancement, and the Nairobi Terminal (PS10) Bottom Loading Facility.

Beyond its core business of petroleum transportation and storage, the company is also diversifying its revenue streams through investments in Fiber Optic Cable (FOC), the Morendat Institute of Oil and Gas (MIOG), and Liquefied Petroleum Gas (LPG).