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"content": "The first recommendation was that the KPA to operationalise the national single window system in order to enhance efficiency and effectiveness at the port. Second, the operations of the clearing agents at the port be legislated to ensure that their activities are properly streamlined and that they operate within a harmonious system and framework with the KPA and the KRA, and with the other stakeholders. We are also talking about them having a professional body, so that not every Tom, Dick and Harry can become freight and clearing agents. Therefore, there is a body that is being formed. We have a curriculum at Bandari College whereby all clearing and forwarding agents will be trained and, therefore, improve the services at the Port of Mombasa. Thirdly, we recommended that the Kenya Railways Corporation Act be amended to provide for the KPA to manage and maintain the inland ports within the country. A port like Kisumu is managed by Kenya Railways. With the problems at Kenya Railways, there has been very little activity at the ports in Kisumu and Lake Turkana where we need to introduce some activities across the border. Therefore, we recommended that the Act be amended so that KPA can play a key role to that effect. Mr. Speaker, Sir, I allow me now to move on and give a highlight of our visit to the KPRL. As I said, this was commissioned in 1963. In 1971, the Kenya Government bought 50 per cent shares. Only in 1974 was the second line commissioned. From that time to date, nothing much has happened, not even upgrading the current facilities. As I said, the installed capacity is four million metric tonnes. But the actual production is between 30 per cent and sometimes 25 per cent. Therefore, it is giving 28 barrels per day instead of 80 barrels. This has resulted into backlog in terms of supply and shortages. Therefore, the policy of protecting KPRL resulted into a loss of Kshs13 billion in the 28 months as of last year. But I am happy to report that the KPRL in Mombasa ceased the operations of refining. It is now being utilized as a storage facility for KPC. We recommended at that time many of the employees working for the refinery be absorbed by the oil marketers, the multinationals. Something is happening on that. But we still have 50 per cent of employees who are still holding on there. The Ministry is still discussing with the players to absorb all the manpower. The shareholding prior to ESSAR was that Chevron Global had 16 per cent, BP had 17 per cent and Shell 17 per cent. Of course, the Kenya Government has 50 per cent. In 2010, the companies sold their shareholding to ESSAR, therefore, making the shareholding 50-50; the Kenya Government and ESSAR, 50 per cent. The unfortunate part of it, is that since 2010 nothing has been invested to upgrade the facility, neither the Government of Kenya nor the ESSAR Group have invested money to upgrade the facility, therefore, making it a loss making operation and thus contributing to the problems that affect the refinery to date. As I said earlier, even if you continue to produce at 25 per cent capacity, it is a very expensive product compared to the imported refined products which would be cheaper. Therefore, we recommended to the Government to take steps that would be of better interest to Kenyans at large. The operations there are basically product delivery, toiling to KPC and also, at the later stage, it was merchant mode kind of exercise where the oil marketers brought the products to be refined at Mombasa, still not at very good efficiency. 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."
}