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{
    "id": 68205,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/68205/?format=api",
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    "content": "as the OTS. Private and transit products will therefore not be allowed to discharge at the Kenya oil Storage facility; 2. Both the Kenya Revenue Authority and the Ministry of Energy have agreed that taxes on the product imported for Kenya should therefore be collected within 15 days of products arrival so as to discourage oil companies using Kenya Pipeline System to store their products. While the depots continue to remain largely underutilized, this measure has been in place since November 2010, and it is intended to decongest the old pipeline system; 3. My Ministry has also informed the oil marketing companies that they will not be allowed to store transit products in the Kenya Pipeline system beyond the stipulated 30 days. Defaulters will therefore be denied access to the pipeline system as this has been observed to be one of the causes of port congestion with the attendant demurrages which is then passed on to consumers raising the prices of petroleum. 4. Oil marketing companies without flow metres which will allow them to receive products from the Kenya Pipeline Company while concurrently loading tankers have been directed by the Ministry to have such meters installed. Kenya Pipeline Company (KPC) is further upgrading the Kipevu Pump Station No.14 in order to pump both petrol and kerosene at the rate of 831 cubic meters per hour just like what is happening to diesel currently. This PS No.14 upgrade will be completed by July 2011. Mr. Deputy Speaker, Sir, on medium term measures, a parallel 14 inch pipeline which is called Line 4 from Nairobi to Eldoret is currently under construction and more than 64 per cent of the works have been completed. This project, on completion, which is anticipated to be on June, 2011 will totally decongest both Kipevu and Nairobi terminals as the flow rate will be raised from the present 220 cubic meters per hour to 600 cubic meters. Currently, KPC Western Kenya storage facilities in Nakuru, Eldoret, Kisumu are grossly under-utilized due to the current pumping constraints relative to much higher and rising demands. On long term measures, we are upgrading the refinery facility and I would like to report to this House that a study has been completed and construction of additional storage depots between Mombasa and upcountry terminals has been commissioned. The decision on the refinery upgrade will be made, hopefully in January, 2011. Thank you."
}