Kenya Pipeline Company (KPC) has announced a 32% increase in its profit before tax for the 2023/24 financial year, reaching Ksh 10 billion. This growth was primarily driven by higher earnings from sales and favorable foreign exchange rates, further cementing KPC’s position as a leading player in the regional oil and gas sector.
KPC Managing Director Joe Sang emphasized the company’s commitment to sustained growth and operational excellence. “We will continue to invest in our people, infrastructure, and technology to ensure that we not only meet but exceed the expectations of our customers and stakeholders,” he said.
Strong Revenue Growth and Increased Throughput
During the 2023/24 financial year, KPC’s revenue grew by 15%, reaching Ksh 35.4 billion from the Ksh 30.9 billion reported in the previous year. This increase was supported by a 6% rise in total throughput volumes, which stood at 9.1 million cubic meters (M3), up from 8.6 million M3 in 2023.
Domestic throughput volumes saw marginal growth, reaching 4.5 million M3, while export volumes surged by 12% to 4.7 million M3. This uptick in export volumes highlights KPC’s enhanced operational capacity and responsiveness to increasing regional demand.
Strategic Expansion and Acquisitions
KPC’s recent acquisition of the Kenya Petroleum Refineries Limited (KPRL) marks a significant milestone in its expansion strategy. KPC has been operating KPRL under a lease agreement since 2017, and the full acquisition now allows the company to leverage KPRL’s fuel storage assets to bolster Kenya’s position as a regional oil and gas hub.
Faith Bett-Boinett, KPC Board Chairman, emphasized the company’s commitment to maintaining the highest standards of operational excellence. “Our recent acquisition of ISO Integrated Management System (IMS) underscores our commitment to maintaining the highest standards of operational excellence and compliance with international benchmarks,” she stated.
Diversification of Revenue Streams
Beyond traditional oil transportation, KPC is exploring alternative revenue streams, including Fiber Optic Cable (FOC) services, the Morendat Institute of Oil and Gas (MIOG), and investments in Liquefied Petroleum Gas (LPG). These initiatives align with the company’s vision to diversify its portfolio and enhance its long-term sustainability.
With a strong financial performance and strategic investments, KPC is poised for continued growth, reinforcing its role as a critical player in Kenya’s energy infrastructure and regional market dynamics.
