The Kenya Pipeline Corporation (KPC) has remitted Sh7 billion in dividends to the National Treasury, providing a much-needed boost to the strained Kenya Kwanza government's coffers.
The dividend remittance, for the fiscal year ending June 30, 2024, comes as a huge boost for the cash-strapped Treasury which is seeking to raise additional resources for budget support.
The handover comes as President William Ruto's administration seeks additional revenue from state-owned enterprises to fund its ambitious budget, projected to exceed Sh4 trillion.
The President had earlier directed parastatals to remit 80 per cent of their after-tax profits to the Treasury, with the government determining the use of the remaining 20 per cent.
Regulatory institutions were ordered to remit 90 per cent of their surplus funds.
KPC Managing Director Joe Sang said in a statement the dividend payout was supported by the corporation's 20 per cent growth in pre-tax profit, rising to Sh10.05 billion from Sh7.6 billion the previous year.
"We have been able to pay the National Treasury dividends to the tune of Sh7 billion," Sang stated.
He said the corporation has also surpassed global benchmarks for pipeline product loss, reducing losses to 0.06 per cent from the industry standard of 0.25 per cent.
Eliud Owalo, Deputy Chief of Staff for Performance and Delivery Management, emphasized KPC's crucial role in Kenya's energy sector and its contribution to the Bottom-Up Economic Transformation Agenda.
He stressed the importance of maintaining global best practices for sustainable growth.
KPC is diversifying its portfolio, expanding into fiber optic cables, developing the Morendat Institute of Oil and Gas, and increasing investments in liquefied petroleum gas (LPG).
The government is pushing for increased LPG access, particularly in schools, relying on KPC's supply chain expertise.
The corporation is also strengthening its export market in East Africa and working to fully operationalize the Kisumu Oil Jetty.
Long-term strategic goals include acquiring and optimizing Kenya Petroleum and Oil Refineries Limited, expanding LPG import and storage facilities in Mombasa, and enhancing pipeline infrastructure.
KPC has also prioritized product loss management and the rehabilitation of key storage facilities, including Port Reitz tanks.
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KPC's Vision 2025 strategic plan targets an annual turnover of Sh150 billion by the end of the year.