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{
    "id": 418313,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/418313/?format=api",
    "text_counter": 218,
    "type": "speech",
    "speaker_name": "Sen. Keter",
    "speaker_title": "",
    "speaker": {
        "id": 169,
        "legal_name": "Charles Cheruiyot Keter",
        "slug": "charles-keter"
    },
    "content": "Thank you, Mr. Temporary Speaker, Sir, for giving me the opportunity to contribute on this Motion. I want to say, on the outset, that I am one of the Members of the Committee on Energy, Roads and Infrastructure, but I was not able to be on the familiarization tour to KPA, KPRL and KPC. However, I want to say that after going through the Report, it is a good and thorough Report. After listening to the contributions by Members, it is a good Report that we need to really adopt and go further to make sure that some of the recommendations which have been suggested are pushed ahead so that we can realize them. I want to start with KPRL which is a very old facility. It is the only facility we have in terms of oil products to Kenya. It was a joint venture between some of the oil marketers; Shell and the others with the Government of Kenya. Sometimes back in 2009, the oil marketers sold off their shares and Essar from India bought all their shares to stand at 50/50. One of the conditions was to inject capital into this facility. It is very surprising that five years down the line, Essar never injected any capital into this facility. Instead they imposed their own management; the Managing Director and the Financial Director all came from Essar, and hence they were running the facility, taking the profit and declaring that it was not profitable. Up to now as I speak, the contract of the shareholding issue has not been resolved. Mr. Temporary Speaker, Sir, Essar should be kicked out like yesterday because they never injected capital into this facility. We are reading from the Report that KPRL is making losses and oil marketers have resorted to importing refined oil directly to this country. They are not importing crude oil so that the Government can get some revenue. The issue of shutting down KPRL vis-à-vis injecting capital, to me, I want to say that this is a very strategic facility. What needs to be done is to kick out Essar, pay them off, although they have not paid anything and let the Government inject capital into KPRL. We should change the technology which is being used there. Since there is very big land there, part of it can be used for storage tanks. As I speak, if today, God forbid, that we cannot get oil supplies to this country, we cannot last for even three days. We do not have any storage facilities. What we have are products for oil marketers. The KPC is holding those products for them. The Government does not have and reserve products for any emergency. Every month, there is a tender which is floated two months in advance for oil marketers to come and pick their products. So, we have to make bold decisions as a country and say goodbye to Essar for not fulfilling their commitment and then the Government can inject money into KPRL. On the KPC, which as the Report says, is doing very well; their finances are good, the issue which is worrying is that we are talking about a pipeline from Mombasa to Nairobi which was built 35 years ago. This was a very small pipeline vis-à-vis the consumption of the country right now especially regionally because there are products The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}