18 Feb 2009 in National Assembly:
Within the framework of that agreement, the KPC increased storage tariffs at KOSF from US$2 to US$3 per cubic meter. All oil companies complied with that tariff increase. As a result, the KPC gave notice to suspend provision of further services to Kenol/Kobil Group of Companies for failure to pay. As at December, 2008, Kenol/Kobil arrears to the KPC, including interest therein, stood at Kshs1.2 billion, which accrued as follows:-
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18 Feb 2009 in National Assembly:
(1) Failure to pay the revised tariff increase for use of KOSF.
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18 Feb 2009 in National Assembly:
(2) Withheld payments to KPC by awarding rebates to themselves.
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18 Feb 2009 in National Assembly:
(3) Demurrage claims allegedly incurred for shipments that could not be discharged at KPC facilities as the company disregarded ullage allocations arrangement at KOSF.
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18 Feb 2009 in National Assembly:
Mr. Speaker, Sir, hon. Members may note that Kenya Ports Authority (KPA) also has informed the Ministry of Energy that they are owed by Kenol/Kobil Kshs564 million as at 1st March, 2008, for seven tenders. Consequently, the two companies owe three parastatals, namely KPRL, KPC and KPA more than Kshs2.3 billion.
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18 Feb 2009 in National Assembly:
Mr. Speaker, Sir, as regards my answer to part "b", whereas the Government has not awarded any contract directly to Kenol/Kobil Group of Companies, both KenGen and KPC have running fuel supply contracts with that group.
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18 Feb 2009 in National Assembly:
There is, however, no evidence that, that has led to the shortage of fuel in the country.
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18 Feb 2009 in National Assembly:
(c) There are no other companies that owe money to the Government. They are all paying their processing fees to KPRL, the storage and transportation fees to KPC and to KPA for ship berthing and dolling services.
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18 Feb 2009 in National Assembly:
(d) Mr. Speaker, Sir, the actions the Government has taken against the two companies for failure to pay fees are:-
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18 Feb 2009 in National Assembly:
When Kenol/Kobil declined to sign the contract for the current transport and storage agreement, KPC gave notice to suspend provision of further services for failure to pay.
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