Uganda and Kenya embark on a trial mission for a newly built Oil Jetty

NAIROBI, Kenya - In a bid to increase its petroleum export within the East African Community market, Kenya’ has begun exporting its petroleum products via the newly constructed Kisumu Oil Jetty (KOJ).

Already the first consignment of 4.5 million litres of fuel products landed at Entebbe Uganda, ending about five years of waiting since the Kenya Pipeline Company (KPC) owned facility was completed, in 2018.

The delays in export via KOJ had been caused by the lack of a corresponding facility in Uganda.

The first vessel, MV Kabaka Mutebi II which was used in a technical trial last week, will move products in the initial stages as Mahathi continues with the construction of three more vessels.

According to Mahathi Infra Uganda, Limited -a firm commissioned to construct the offloading facility, storage tanks, and a barge has already been completed and it will be used to move fuel between Kenya and Uganda, through Lake Victoria.

This latest development now seeks to create a complete marine fuel transportation system between Kenya and Uganda, with supplies targeted for the neighbouring country and beyond.

The jetty by Mahathi Infra Uganda Limited runs about 270 metres into the lake. It has put in place storage tanks with a capacity of 70 million litres.

George Mukula -Mahathi Infra (Uganda) Limited chairman revealed that the second barge will be ready by March this year, after which the entire project will be officially commissioned by Presidents from the region, led by Kenya and Uganda.

“Currently we are building four (barges) in total as we expand our capacity and enhance lake transport logistics linking the entire East Africa Community region. The fuel products business along Lake Victoria will be one of the largest bilateral trade engagements between Kenya and the region,” says Mr. George.

Kenya will be targeting Uganda, Rwanda, Burundi, Eastern DRC, and parts of Tanzania.

Uganda however remains Kenya’s top export market for imported oil products (super petrol, diesel, kerosene, and Jet A 1-aviation fuel).
One barge is the equivalent of 60 oil tankers moving fuel by road.

George further added that “We expect the use of the lake facilities and water transport will reduce the cost of transporting fuel by about 50 percent. As of now, it takes about 14 hours to move products from Kisumu to Uganda, doing away with frequent border delays faced by road oil tankers.”
The company has struck a deal with Total while talks are on with 19 other Oil Marketing firms for the use of the Kisumu facility and its facility in Uganda.

The project was partly funded by Equity Bank. Uganda is also expected to put up another facility in Jinja by the Uganda National Oil Company (UNOC) and One Petroleum.

The coming into operation of the KOJ is expected to help Kenya recapture the petroleum export market lost to Tanzania in recent times.

While it has been serving the Ugandan market through the Kisumu and Eldoret depots, Kenya Pipeline has lost about 20 percent of its export business in the last four years, with competition remaining high on the Central Corridor connecting landlocked countries to the Port of Dar es Salaam.

Kenya serves the region through the Northern Corridor that connects the Port of Mombasa to the hinterland. Eldoret and Kisumu depots have storage capacities of 48 million litres and 45 million litres, respectively.

The Kisumu Oil Jetty had been idle since the contactor, Southern Engineering Company (SECO), handed over the facility to Kenya Pipeline Company.
With the two facilities in Uganda and Kenya operational, it creates a stable and sustainable fuel supply system, according to experts.

KPC managing director Macharia Irungu further pointed out that Kenya has the opportunity to bolster regional business and strengthen its ties with the neighbouring countries.

“The project has the potential to turn Kisumu into a focal point of oil and gas commerce in the region making it one of the busiest inland ports in Africa.”

GAROWE ONLINE