Editorial

The Kenyan economy is the main fighting point of all presidential contenders and political parties in the next general elections, just as it was over the last one in December 2007.

Its health is a nightmare especially for those who have little knowledge or scant regard for the fortunes/livelihoods of the average citizen.

Those are the wannabe leaders who try to invoke tribal feelings and call in political and other debts, including violence to try and get their ballot boxes stuffed.

The economy is heavy dependent on rain-fed agriculture and the horticulture/floriculture exports so that it is said to be at the mercy of the vagaries of rapidly changing global weather cycles and climate change.

And considering the manufacturing sector is not Kenya’s strong point and the country relies heavily on imported raw materials and finished goods, it is a worrying prospect as the agricultural sector employs nearly 75 per cent of the estimated 41 million-strong population, most of who are engaged in subsistence production.

As economic performance relies heavily of heavily on a few farm exports that depend on availability of rainfall, unpredictable weather patterns, a burgeoning population and unstable world currencies, there has been a gradual shift towards self-sustainability, subsidised inputs and better market access.

Manufacturing and services industries have been beefed up and the results have been something to write home about. One problem though: the cost of imported fuel has often proved prohibitive.

And until the oil find in Turkana proves to be of commercially viable and extractable stock, the fuel import bill will remain the greatest factor influencing public policy, elections, foreign policy and the State of the Nation.

That is why the exclusive story by The Standard yesterday raises disturbing questions.

Firstly, since Kenya stopped using Regular petrol, she now pinpoints Unleaded Super, which tithe Kipevu storage does not have capacity to process. Therefore, all Super Petrol is imported as is and must be inspected at the pre-shipment point.

Then a second inspection is conducted once it lands in Mombasa, whose results must tally with the exporters’ findings. At what point did the over 600,000 tonnes of Super Petrol get contaminated by the so-called “Dirty Mix”?

billion-shilling loss

Was there an element of sabotage at Kenya Pipeline Company (KPC)? Did the sensors of ‘bad’ oil fail to not detect the substandard product? If so, should thousands of motorists and machine operators be worried for their safety?

Was the oil pumped by KPC to Nairobi the same product cleared by its laboratory and inspection firm SGS? What were the results of the KPC and SGS tests on the oil in Mombasa?

Is the discovery a pointer to corruption in KPC and Ministry of Energy? At what stage and where did the oil get adulterated and who was responsible? Shall we hope to see negligent officials surcharged with the billion-shilling loss and disruption of economic activity?

If KPC is sending back” the contaminated product, who is monitoring that it does not sneak back into the market like happened with Aflatoxin contaminated maize and uncustomed sugar some time back? And why are we sending it back to the Kipevu refinery, which does not process Super? Actually, who is fooling whom here?

Considering the massive loss, and cost of returning the imported fuel, why is the importer not indignantly protesting his innocence and taking KPC to court? Who will bear the cost of re-shipping fuel?

Will it (or has it already been) be passed on to the consumer?

Further, should consumers be worried, about a possible fuel shortage as the re-shipment means a massive disruption of the flow pattern to the market? Are consumers staring at another round of hoarding?

Are the chickens coming home to roost as fears take root that KPC facilities are ageing, like their officials said during the Sinai Slum fire disaster? Can the Government urgently audit KPC for safety and quality control?

And finally, can KPC come clean on rumours that a foreign country may be “borrowing” the facilities at the state parastatal to store its oil and transfer the same from that point? Could this be one of the constraints that are leading to adulteration and contamination of a product that is literally a lifeline for our country’s very survival?