The Kenya Pipeline Company (KPC) has handed an interim dividend payment of Kshs 5 billion to the National Treasury for the financial year ended June 2023. The dividend payment follows a 21% increment in KPC’s profitability to Kshs 7.6 billion in the financial year 2022/2023 compared to Ksh. 6.3 billion the previous year.
National Treasury Cabinet Secretary Prof. Njuguna Ndung’u said key parastatals in the energy sector continue to deliver a return on investment to taxpayers with KPC paying out the highest dividend to taxpayers.
“Most parastatal are still dependent on the National Government for their operations. This means that taxpayers have to incur an additional burden in supporting and bailing them out due to poor performance.
“It is however noteworthy that KPC continues to deliver positive results on an annual basis and remains a self-funded corporation that delivers a return on investment to its shareholders who are the people of Kenya. The Ksh. 5 billion in interim dividends is the highest dividend paid by any state corporation,” said Prof. Ndung’u.
Energy and Petroleum Cabinet Secretary Davis Chirchir said KPC plays a strategic role in ensuring the country’s fuel security and that of the wider East African Region is guaranteed.
“As KPC marks 50 years of service delivery to Kenyans and the wider East African Region, it remains the most profitable State Corporation with both strategic roles and revenue targets. KPC must continue to diversify its product offering while expanding its reach beyond our borders.
Fuel security is a critical driver of the economy and that is why the government continues to invest in KPC by entrusting it with key assets. We recently concluded the full handover of the Kenya Petroleum Refineries Limited (KPRL) to KPC. This strategic decision is meant to enable KPC to enhance the petroleum supply chain infrastructure and thereby result in the security of supply and cost-efficiency through reduced demurrage costs,” said Chirchir.
He challenged KPC to leverage its existing infrastructure to boost efficiencies within the petroleum industry and generate additional cost savings that can be passed on to consumers.
KPC plays a strategic role in ensuring access to petroleum products to neighbouring countries across East Africa including; Uganda, Rwanda, Eastern DRC, Burundi, South Sudan and Northern Tanzania. The recently launched Kisumu Oil Jetty (KOJ) cements Kenya’s strategic role to neighbouring countries through providing an efficient, safe and reliable mode of moving petroleum products.