Poor quality imports spark fuel crisis fears

What you need to know:

  • Company that won tender delivers 66,852 cubic metres of substandard oil

Kenya is facing a fuel crisis after a company that won the tender to import oil delivered 66,852 cubic metres of substandard cargo.

The Nation has learnt that the shipment arrived at the port of Mombasa on Wednesday at about midday.

Gapco won the contract through an open tender system where one oil marketer imports crude oil on behalf of the country.

Documents from a crisis meeting held on Thursday show that the shipment will be of poorer quality compared to what is approved by the Kenya Bureau of Standards by the time it gets to Nairobi if delivered through the country’s main pipeline.

Kenya was, however, forced to accept the stocks given that the current stocks would be depleted in five to six days while a new shipment would take more than two weeks.

By Thursday, the country had only 12,342 cubic metres available in the tanks and 17,000 cubic metres in the pipeline, bringing a total of 29,342 cubic metres.

“With a daily demand of 5,000 cubic metres, the total stocks will be depleted in five to six days,” documents from the meeting read in part.

This is the second time the firm is delivering oil of questionable standard.

This comes at a time when some parts of the country are already witnessing fuel shortages.

The oil industry supply coordination committee, chaired by Mr David Ohana, the KenolKobil Kenya managing director, has already asked the Energy ministry to notify the standards body to exempt the industry from meeting the specifications required in selling fuel at the retail stations.

“On behalf of the industry, we therefore request you to write to Kebs (Kenya Bureau of Standards) informing them of the foregoing and request their waiver of the Mogas FBP spec for this cargo given that it will eventually be sold through the retail stations,” said Mr Ohana in a letter addressed to Energy permanent secretary Patrick Nyoike.

Attempts to get an official comment from the Energy ministry were futile.