Kenya Pipeline Lands 25-Year Gulf Energy Deal Projected to Earn Ksh 93.68B

Kenya Pipeline Company PLC (KPC) has announced two significant agreements that it says will strengthen its role in Kenya’s petroleum supply chain and support long-term revenue generation.

In a statement dated Thursday August 26, 2026, the company disclosed the material contracts to shareholders, investors and other stakeholders, saying the agreements involve its wholly owned subsidiary, Kenya Petroleum Refineries Limited (KPRL), and the Kenya Ports Authority (KPA).

The first agreement is a long-term Crude Oil Storage and Handling Contract between KPRL and Gulf Energy E&P B.V.

Under the deal, KPRL will provide facilities and services for the receipt, storage, handling, and delivery of crude oil for export through Kipevu Oil Terminal II.

Details Of The Deal

According to KPC, the contract is intended to enhance the commercial utilization of KPRL’s existing and upgraded infrastructure while expanding the company’s participation in petroleum logistics.

KPC said current internal projections estimate gross revenue of about Ksh 93.68 billion over the 25-year contract period.

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However, KPC clarified that the estimate is based on projected throughput and tariff assumptions and should not be interpreted as a guaranteed revenue commitment.

The second agreement is a revised Service Level Agreement between KPC and KPA governing the operation and maintenance of Kipevu Oil Terminal II.

Revised Agreement

KPC noted that the terminal, which is owned by KPA, serves as the main marine entry point through which petroleum products are received before being transferred into KPC’s pipeline and storage network.

The revised agreement replaces the previous arrangement and is expected to strengthen clarity on roles and responsibilities, improve accountability, enhance performance monitoring, coordinate maintenance activities and support business continuity at the terminal.

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While KPC said the agreement is not expected to have a significant direct monetary value on its own, it described it as operationally critical to ensuring the reliable receipt and transportation of petroleum products serving Kenya and regional markets.

The company said the two agreements collectively reinforce KPC’s strategic position in the petroleum supply chain, support the optimization of KPRL assets and provide a platform for diversified and sustainable revenue generation

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A photo of Kenya Pipeline Company head office in Nairobi. PHOTO/ KPC