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The theme for the event was Government Agenda for the Petroleum Energy Sector.

The Petroleum Industry through its professional Industry association, the Petroleum Institute of East Africa (PIEA) on Wednesday April 26, 2023 7.30a.m. held the Quarter 1 2023 State of the Industry Briefing at the Sarova Stanley Hotel, Nairobi.

This was the first state of the oil industry briefing of 2023 as well as the first engagement where the policy maker through the Cabinet Secretary (CS) Davis Chirchir, Ministry of Energy and Petroleum (MOEP) gave insights as to what the relatively new administration has planned out for the petroleum subsector and outline and review progress on pertinent issues facing Industry in Kenya and the East African region.

Figure 1Back row, left to right; John Okulo, NCBA Group Director, Corporate Banking, Bernard Njiraini Managing Director, Kenya Bureau of Standards, Joe Sang Managing Director, Kenya Pipeline Company and Solomon Osundwa Petroleum Institute of East Africa (PIEA)

PIEA, the Policymaker and Regulator addressed among other issues new developments in the fuel supply chain management that have coincided with the appointment of a new leadership at the Ministry of Energy & Petroleum. Key in point Industry discussed the importation of petroleum products through the Government to Government arrangement that is projected to deflated demand for the USD in order to curb speculation and reduce the depreciation of the KES resulting into enormous macro-economic benefits considering that Kenya is a net importer of various finished products.

Further discussed was the Government LPG Enhancement Program where the GOK through the Ministry aims at ensuring transition of all learning institutions in the country from the use of biomass for cooking to the use of LPG by the year 2025. This program is aimed at reducing deforestation and also help in reducing health complications associated with indoor pollution.

With the Presidential focus on LPG as the key to success of the Nation Tree Growing and Restoration Campaign (15 billion trees targeted to grow) Industry has come forward to not only grow 200,000 trees in Ngong forest but also to offer to meet the aspiration of LPG conversion for every household that is using charcoal, firewood or kerosene.

Proposed reforms in the lubricants segment were also discussed with a view to implementing them given the demonstrated opportunities in increasing local manufacturing, increased exports and tax revenue as well as employment and resuscitation of the attendant sub-sectors.

The importance of Petroleum Business Licensing and Construction Permits, Regulations Development, Petroleum Information and Statistics, Enforcement and Consumer Protection was reiterated in the interest of promoting a level playing field in the market and a stable business environment.

PIEA also shared a detailed petroleum industry performance report noting that there was increased demand for oil products in 2022, which experienced a 2% growth in the consumption of petroleum products despite a 35% increase in the average Murban crude oil prices during the same period arising from the Russia-Ukraine geo-political tensions.

PIEA continues to provide a forum for expertise and excellence in the oil industry, promote professionalism and free enterprise in the petroleum business supported by the highest operations and business standards. The Institute publishes the Petroleum Insight Magazine on a quarterly basis. The Magazine is one of PIEA’s platforms for providing educative, professional, precise local and global Energy development as well as emergent issues.

Photos of the Event are available here: https://drive.google.com/drive/folders/1TKU8eKtFSUeRM2YUKmUVfl_H3xqGUWGv?usp=share_link

Presentation on the Industry Outlook: Click here

For further information, please contact:

Kimemia Mugo, Public Relations Consultant - +254 721845944

Or

Ayuma Likhanga, Buisness Analyst, Petroleum Institute of East Africa – This email address is being protected from spambots. You need JavaScript enabled to view it.