Consultant hired by Kenya Petroleum Refineries for $899 million upgrade

26 April 2011

Kenya's sole fuel processor Kenya Petroleum Refineries has hired an engineering consultant to assist in an $899 million (£545 million) upgrade.

The work will involve construction of a new pipeline to the western town of Eldoret from Nairobi and should be completed by August, Bloomberg reports.

However, the overall upgrade, for which funds are being raised by Standard Chartered Bank Plc, is not due to be finished until 2015 or 2016.

Once completed the facility is expected to deliver fuel at 600,000 litres per hour, compared with the current 200,000 litres per hour, the Energy Ministry said.

The news could go some way to address complaints regarding the increasing cost of fuel, as inefficiency in the energy sector is often cited as a cause of the rise.

Kenya is now asking private companies to invest in fuel storage facilities.

It follows news that construction on the 300 MW Lake Turkana Wind Power project in the country will start before the end of the year. 

Category: Energy