The new Sh 40 billion ultra-modern Kipevu Oil Terminal (KOT) facility at the port of Mombasa will be ready by March.
The facility which is financed by Kenya Ports Authority [KPA] and constructed by China Communication Construction Company (CCCC) will save the government the annual Sh 2 billion demurrage charges upon completion.
President Uhuru Kenyatta said the facility is 96 per cent complete before its commissioning in two months’ time.He attributed the loss of the annual Sh 2 billion in demurrage charges to oil vessels queuing at port of Mombasa to discharge their products.”This is as a result of oil vessels waiting in a queue to discharge their products,” he pointed out.
He spoke during the unveiling of a plaque during an inspection of the new Kipevu oil terminal at the port of Mombasa in Mombasa county.
The Head of State said he is optimistic that upon the completion of the facility the delay of oil vessels in discharging their products will be a thing of the past.
President Kenyatta who was accompanied by visiting State Councillor and Minister for Foreign Affairs of the People’s Republic of China Wang Yi said after a successful inspection of the facility that the completion of the new facility will be able to reduce the cost of fuel for members of the public.
He added apart from reducing the cost of fuel to the consumer it will also ensure the country has adequate supply of local products.
“The benefits of ending the delays of oil vessels in discharging their products at the port of Mombasa will directly benefit the common members of public,” he pointed out.
In his welcome remarks, the visiting Foreign Affairs Minister described the facility as one of the major infrastructures in the country.
He refuted claims the facility will be beneficial to Kenya alone arguing that it will serve the whole region.”I would like to applaud the Kenyatta administration which has for the past 10 years contributed immensely to development,” he pointed out.