The Kenya Pipeline Company (KPC) has acquired 100 percent shareholding of the Kenya Petroleum Refineries Ltd (KPRL).
The development follows a signing ceremony between Energy CS Davis Chirchir and his Treasury counterpart Njuguna Ndung’u.
“During the transition period, KPC should carefully evaluate and determine the long-term mandate and existence of KPRL, and I promise that the National Treasury will guide and support all efforts towards achievement of this goal. The Government therefore expects KPC to therefore seize this opportunity to consolidate its business leadership in the region and maximize value to the shareholder, employees, and society at large”, said Prof Ndung’u.
Symbiotic
“The acquisition of Keya Petroleum Refineries Limited by Kenya Pipeline Company is symbiotic. It is envisaged that the financial performance of both institutions will improve. Moreover, the operationalization and growth of KPRL under the new shareholder will bring social and economic benefits to the coast region and to Kenya at large.
“Ladies and Gentlemen, Currently Kenya Petroleum Refineries Limited Facilities are leased by Kenya Pipeline Company who operate and manage the facility. The acquisition therefore changes the arrangement in that Kenya Pipeline Company shall own Kenya Petroleum Refineries Limited. KPRL shall remain a legal entity as a subsidiary of KPC. In line with Kenya Kwanza agenda of jobs creation, there shall be no loss of employment because of this acquisition”, said Chirchir