Kennedy Senelwa
5 October 2008
Nairobi — The National Oil Corporation of Kenya has embarked on Sh60 million project to expand petroleum products storage capacity at its Nairobi depot.
The State-owned fuel distributor's managing director Mwendia Nyaga said the money will go towards expanding diesel storage capacity by 26,000 cubic metres in Nairobi's Industrial Area with two new tanks being installed.
He said building of the tanks, each with a capacity of 13,000 cubic metres, is set for completion by end of December as Nock embarks on operating in a competitive environment.
Mr Nyaga said in an interview that the State corporation is currently working to raise its visibility on the commercial and retail front by providing oil products at competitive prices matched by improved service delivery.
Only last week, the company led the way in cutting their retail prices of petrol and diesel below Sh100 setting the stage for other oil dealers to think about their prices.
The MD said the expansion aims at enhancing Nairobi depot utilisation to full capacity to be able to serve the city and its environs, which comprise 60 per cent of the domestic demand for oil products in Kenya.
"With a daily capacity of over 1.2 million litres, the facility built at a cost of Sh350 million and commissioned in 2002, has enabled new smaller firms to penetrate the greater Nairobi market," he said.
The government has allowed tankers ferrying fuel to Uganda and other countries to load export oil products at depots in Nairobi as raising effective pipeline pumping capacity is being addressed.
Mr Nyaga said Nock has a market share of about almost eight per cent after the acquisition of 33 outlets of Somken Ltd in June which made the total number of service stations 67. It had also in July last year bought 10 BP outlets.
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