Nairobi: The Energy and Petroleum Regulatory Authority (EPRA) has initiated nationwide public consultations on a proposal by the Kenya Pipeline Company (KPC) to review Pipeline Transportation and Secondary Storage Tariffs for the 2025-2028 control period. EPRA Director General Daniel Kiptoo stated that the exercise aims to promote transparency and inclusivity in determining new tariffs, in line with the Energy Act 2019 and the Constitution of Kenya 2010.
According to Kenya News Agency, Kiptoo emphasized that stakeholder consultations are a legal and constitutional requirement designed to ensure that all voices are heard before any tariff adjustments are made. EPRA has received an application from KPC seeking approval for a 2.4 percent increase from the current tariff of Sh5.44 per cubic metre per kilometre, approved in September 2022 for the period ending June 2025. The new proposal will cover the next three-year period from July 2025 to June 2028.
EPRA’s main objective is to ensure cost recovery for infrastructure investments and operations while safeguarding consumer interests. Tariffs are influenced by factors such as transportation distance, asset utilisation, operational costs, and capital investments. KPC’s proposed adjustments are intended to support capital expenditure, operating costs, and maintenance needs for the 2025-2028 control period.
Among the key projects to be financed through the proposed tariff are the Eastern Pipeline Capacity Enhancement Project, construction of new storage tanks and flow-rate upgrades in Western Kenya, replacement of the ageing Enterprise Resource Planning (ERP) system, establishment of a modern data and Control Centre (SCADA), and upgrading of obsolete Automatic Tank Gauging Systems.
KPC Head of Corporate Planning, Elizabeth Akinyi, reaffirmed that KPC remains fully government-owned and has operated since 1978, when the first Mombasa-Nairobi Pipeline was commissioned. KPC’s mandate includes handling imported petroleum products from the Kipevu Oil Terminal into primary storage facilities at the Kipevu Oil Storage Facility (KOSF) and Kenya Petroleum Refineries Limited (KPRL) before transporting them to inland depots.
Akinyi explained that KPC currently operates a 20-inch Mombasa-Nairobi line, built in 2018, with the capacity to move up to 10 million cubic metres annually. The Company also runs multiple lines linking Nairobi to Eldoret and Kisumu, enhancing supply reliability. KPC’s storage capacity has grown from 887,000 cubic metres to 1.138 million cubic metres over the last three years.
She further highlighted improvements implemented by the Company, including a leak detection system across the entire pipeline network, construction of bottom-loading facilities in western depots, and ongoing flow-rate enhancement projects. Akinyi reassured stakeholders that KPC’s pipeline rates will remain significantly cheaper than road transport, which averages Sh9.12 per cubic metre per kilometre.
Akinyi added that the expected effect on fuel pump prices would be minimal, with the impact on consumers being marginal while the investment benefits to the country’s energy infrastructure will be substantial. KPC’s application to EPRA, submitted in June 2025, is based on the revenue requirement methodology, considering the regulated asset base, operational expenditure, depreciation, taxes, and an allowable return on equity and debt.
