On 14th May 2025 we had a meeting at kenya Pipeline Company (KPC) Where Oil Marketers Plead for Waiver of KPC Ageing Penalties Amid Regional Market Challenges
Local oil marketers, through the Oil Tactical Exchange of Kenya (Otek), have urged the Kenya Pipeline Company (KPC) to waive ageing penalties for fuel that overstayed in storage from June 2024 to March 2025. The delays were attributed to the loss of the Ugandan market after direct imports, challenges in accessing DR Congo and South Sudan, and dollar shortages in South Sudan.
KPC fines $2 per cubic metre daily for products not evacuated within 26 days. Otek warns that paying these fines would severely impact marketers due to reduced sales. KPC is yet to respond, as waivers above Sh100,000 require approval from the Energy minister and Treasury.
The penalties, introduced in 2017, aim to prevent stockpiling and speculation in fuel prices while maintaining KPC’s capacity for new shipments.