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{
    "id": 421451,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/421451/?format=api",
    "text_counter": 57,
    "type": "speech",
    "speaker_name": "Sen. Mwakulegwa",
    "speaker_title": "",
    "speaker": {
        "id": 101,
        "legal_name": "Danson Mwazo Mwakulegwa",
        "slug": "danson-mwazo"
    },
    "content": "Thank you, Mr. Speaker, Sir. I had started moving this Motion on Thursday, last week. It is about the Committee visit to Kenya Ports Authority (KPA), the Kenya Petroleum Refineries Limited (KPRL) and Kenya Pipeline Company (KPC) made last year between 5th and 8th August, 2013. Mr. Speaker, Sir, we visited the three corporations to familiarize ourselves with their operations, challenges and workings. We also wanted to develop a working relationship with the key people working in those corporations and acquaint ourselves with all the necessary policies which are in place. We also equipped ourselves with any legislation that could come to the floor of the Senate. Therefore, during our visit, one key observation came to play. We all agreed that all the key corporations be involved. We know the KPA is the key port in East Africa. We also found out that one of the setbacks in the operations of the three corporations is unreliable power supply. That impacts the corporations to an extent that two to three hours are lost due to unreliable power supply. As you know, the port in Mombasa is the only major port in East Africa from Tanzania to the Red Sea. This port is basically relied upon by northern Kenya and also the hinterland countries like Uganda, Southern Sudan, Burundi, Rwanda and the Eastern part of the Democratic Republic of Congo in terms of conveying products to and fro. Mr. Speaker, Sir, the KPRL is the only refinery in East Africa. This refinery was set up in 1963. In 1971, the Kenya Government acquired 50 per cent shareholding. In 1974, the second production line was installed. From 1974 to date, there has been very little upgrade in these facilities. Therefore, the installed capacities of four million metric tonnes per annum are basically not realized. Currently, they are operating at between 30 to 35 per cent. Therefore, it has become almost obsolete. The Government of Kenya has had a policy to protect the KPRL that led to massive loss to the economy resulting in higher consumer prices in the last 28 months. As at the time we were visiting last year, the country had incurred a loss of Kshs13.05 billion. This is the difference between the product sourced from the refinery and the refined products imported directly to the market. If we are to upgrade KPRL in Changamwe at the current facilities, we will need US$1.5 billion. Even with that, the four million metric tonnes have already been surpassed. The current demand in Kenya is 4.5 million metric tonnes. Mr. Speaker, Sir, when it comes to the KPC, the Mombasa-Nairobi pipeline is 35 years old and requires a lot of rehabilitation with some of the equipment being obsolete. The tear and wear is also very frequent. We only have one jetty for fuel off-loading and loading at Kipevu. This handles 99 per cent of the country’s imports. Therefore, it exposes the country. If there is any disruption or catastrophe, then this country will go without fuel. Let me take this opportunity to give an update of these three corporations. I will start with the KPA. The KPA has five major facilities; the Container Terminal, the 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."
}