KPC declares Sh10bn profit for period ending June 30, 2024

This is a 32 per cent increase compared to Sh7.6bn realised the previous fiscal year.

by EMMANUEL WANJALA

Realtime13 March 2025 - 15:17

In Summary

During the 2023-24 period, the company achieved six per cent growth in total throughput volumes to 9.1 million cubic meters.
KPC Board chairperson Faith Bett–Boinett credited the outstanding performance to enhanced operational efficiency.

*KPC oil storage tanks at Nairobi's main terminal. /KPC*

The Kenya Pipeline Company has reported a Sh10 billion profit before tax for the 2023-24 financial year.

The profit margin represents a 32 per cent increase compared to Sh7.6 billion realised in the previous fiscal year.

KPC Board chairperson Faith Bett–Boinett credited the outstanding performance to enhanced operational efficiency.

“Our strategic outlook has evolved with the revision of our Corporate Strategic Plan to Vision 2025. This forward-thinking approach ensures that KPC remains aligned with the dynamic market environment and continues to fulfill its strategic imperatives," she said.

Kenya Pipeline Company (KPC) is a state corporation tasked with transporting, storing and delivering petroleum products to consumers of Kenya by its pipeline system and oil depot network.

During the 2023-24 period, the company achieved six per cent growth in total throughput volumes to 9.1 million cubic meters, up from 8.6 million cubic meters reached the previous financial year.

Throughput volume means the volume of commodities delivered into dedicated storage, expressed as net standard volume

Domestic throughput volumes registered a marginal 0.1 per cent growth to 4.5 million cubic meters, while export volumes surged by 12 per cent to 4.7 million cubic meters.

This translated to a 15 per cent increase in revenue from Sh30.9 billion the previous financial year to Sh35.4 billion in the year ended June 2024, attributed to higher sales volumes and favourable forex rates.

The positive outlook reflects KPC’s enhanced operational capacity and commitment to meeting customer demand.

"Our recent acquisition of ISO Integrated Management System (IMS) underscores our commitment to maintain the highest standards of operational excellence and compliance with international benchmarks,” Bett–Boinett said.

KPC MD Joe Sang emphasised the company’s dedication to driving sustainable growth and innovation going forward.

‘‘Looking into the future, KPC remains dedicated to driving sustainable growth and innovation.

"We will continue to invest in our people, infrastructure and technology to ensure that we not only meet but exceed the expectations of our customers and stakeholders," he said.

"The next phase of our journey will be guided by the same principles of excellence, resilience and vision that have brought us this far."

Sang revealed that KPC has completed the acquisition of the Kenya Petroleum Refineries Limited (KPRL), which has been operated by the firm under a lease agreement since the year 2017.

The MD said the development underscores the strategic importance of leveraging KPRL’s fuel storage assets to drive Kenya’s position as a regional oil and gas hub.

As a way of increasing operational efficiency, KPC has continued to invest in capital projects like leak and intrusion detection and the Supervisory Control and Data Acquisition (SCADA) system, Line IV (Nairobi- Eldoret) capacity enhancement and Nairobi Terminal (PS10) bottom loading facility.

In addition to growing its main revenue stream (transportation and storage of petroleum products), Sang said KPC is also exploring alternative revenue streams such as Fiber Optic Cable (FOC), Morendat Institute of Oil and Gas (MIOG), and investments in Liquefied Petroleum Products (LPG).