Sessional Paper No. 12 of 1989 on Kenya Government Guarantee of a Loan to Kenya Pipeline Company Limited by Directions Des Relation Economique Exterieure of France

Abstract

The Kenya Pipeline Company Limited is undertaking the extension of the Mombasa-Nairobi White Petroleum products pipeline from Nairobi through Nakuru biforking at Sinendet and initially terminating at Eldoret and Kisumu and thereafter at Malaba. This extended pipeline will transport gasolines, kerosene and gasoil required for Western Kenya market and for export to neighbouring countries. The products will be pumped through four booster stations with terminals at Nakuru Eldoret and Kisumu and connected by a pipeline submerged under the ground. Transportation of bulk liquid petroleum products by pipeline has been proven as the most efficient means available. This has been confirmed by the performance of the existing pipeline from Mombasa to Nairobi and by feasibility studies undertaken by consultants and detailed appraisals made by the World Bank. This project will be financed by a loan which the Government has agreed to guarantee, of US $21311640 equivalent to K£ 23261655.06 granted by the Directions Des Relation Economique Exterieure of France.