KPC to shorten testing time for petroleum products in lab

Business
By Macharia Kamau | Feb 06, 2024

Senior Chemist Mary Njeri Ngotho Testing density of Petrol at the Quality control laboratory Nairobi terminal at KPC head office. [Jonah Onyango, Standard]

Kenya Pipeline Company today received the go-ahead to test petroleum products across its laboratories, a move that is expected to see the firm now undertake testing of fuel internally and reduce the time taken from a day to just six hours.

The company has to date been outsourcing most of the testing to the Swiss testing and inspection from SGS but has now received accreditation from the Kenya National Audit Service (Kenas) for its six labs spread out along the pipeline route, which will now enable it to conduct the tests at its laboratories.

This will reduce the amount of time that ships have to wait before they start discharging petroleum products being imported to the country.

Delays experienced before a ship discharges the imported fuel into the KPC tanks in Mombasa usually attract a fee referred to as demurrage and this is regarded as a prudently incurred cost by the importing oil marketing company and passed on to consumers.

"We have been testing products outside our depots with SGS and this normally takes 24 hours, with this accreditation, the turnaround time will be about six hours," said Joe Sang, managing director KPC.

"We are also planning to commercialise the laboratory services to entities such as the Kenya Bureau of Standards and other organisations including private sector players and this will mean an additional revenue stream for KPC."

Sang further disclosed that the state-run pipeline company has been spending Sh20 million annually on outsourcing the service. The company has seven testing sites, two in Mombasa and another two in Nairobi as well as in Nakuru, Eldoret, and Kisumu.

"Oil marketing companies will be able to test their products at the point of convenience at our depots in the different towns and cities," said Sang.

Kenas said the accreditation it issued to KPC was the largest multi-site accreditation in Eastern Africa.

Share this story
Ousted: Humphrey Wattanga exits KRA
KRA positions the move as part of a leadership transition at the tax authority.
Uchumi to hold first shareholders' meeting in eight years
Uchumi currently operates under a Company Voluntary Arrangement, an agreement between the company and its creditors supervised by the court. 
Inside State's plan to auction Kenya's generational mineral wealth
Kenya’s government has launched its largest-ever auction of mining rights to attract global investors and raise revenue by offering access to strategic minerals.
Why Kenyan enterprises are stuck in the hustle stage
A new report finds most Kenyan enterprises remain stuck in a “hustle economy” due to fragmented markets, weak aggregation, and limited access to growth capital.
StanChart launches China, Kenya corridor to boost SME growth, cross-border trade
Standard Chartered has launched a China–Kenya Trade Corridor to help SMEs expand internationally by simplifying cross-border trade and providing practical financial support.
.
RECOMMENDED NEWS