Ports agency throws KPC under the bus in fuel saga

Appearing before the Senate Energy Committee, the ports authority distanced itself from the controversial cargo, saying its role ends once a vessel is safely berthed.

All subsequent discharge operations, the authority said, fall squarely under the pipeline company.

The authority provided a detailed timeline of the vessel’s movement, stating the MT Paloma arrived at the outer port limits on March 27, at 2.30am.

The vessel was carrying 60,200.813 tonnes of Premium Motor Spirit, as declared by Sturrock Shipping (Kenya) Ltd.

KPA managing director Captain William Ruto told senators that standard procedures were strictly followed.

“The pilot boarded the vessel at 17.50 hours [5.30pm] upon lodgment of the manifest, and the vessel was brought alongside KOT II at berth No 1 at 20.42 hours [8.42pm],” he said.

KPA emphasised that once vessels dock at the Kipevu Oil Terminal II, responsibility shifts entirely to KPC.

“Upon berthing of tanker vessels at KOT II, cargo discharge and all associated operations are undertaken by KPC,” Captain Ruto said.

“Accordingly, after berthing, KPA is not privy to subsequent actions by relevant government agencies,” the authority said, underscoring that the same protocol applied to the MT Paloma.

The authority confirmed that discharge of the vessel was completed on March 30 at 12.12pm, after which all port charges were settled before the ship departed later that evening.

Despite KPA’s defence, senators turned their attention to glaring gaps in fuel quality control, questioning how substandard petroleum products were allowed into the supply chain.

Nominated Senator Veronica Maina warned that weak oversight risks exposing Kenyans to poor quality fuel.

“We should stop substandard products from passing through the Kenya Pipeline system,” she said, while also questioning what mechanisms KPC has in place to detect contaminated fuel.

She further raised concerns over policy decisions that could allow substandard fuel into the market, asking why standards governing petroleum products could be waived.

Senator William Kisang sought clarification on future supply, pressing KPA to explain how many cargoes are expected in the coming weeks compared to the same period last year.

In response, KPA general manager Moses Taiwu assured the committee there is no risk of shortages.

“We have sufficient oil cargo ships docking in Mombasa in the next 14 days, so we don’t expect fuel shortages,” he said.

At the same time, lawmakers called for tighter verification systems.

Senator Danson Mungatana proposed establishing independent laboratory testing to confirm fuel quality before distribution.

“Instead of relying on manifests, can we have an efficient laboratory to verify quality?” he asked.

Appearing before the committee the day before, KPC acting managing director Pius Mwendwa explained that the authority maintains stringent quality assurance and control measures across all its operations.

He said the authority does not accept, receive or offload substandard petroleum products into its storage or pipeline systems.

According to Mwendwa, the owner of the cargo aboard MT Paloma was instructed to remove the product from the KPC system.

He said any costs associated with the removal of substandard petroleum products are borne by the importer responsible for the cargo, in line with established commercial and regulatory requirements.

Currently, the substandard fuel is still in KPC system even as discussions are underway to determine exactly how to implement of the directive.

KPA maintained that port operations remain efficient, reporting that 19 tanker vessels were handled between March 1 and April 12, carrying PMS (premium motor spirit, or petrol, gasoline), automotive gas oil (AGO), and Jet A-1.

Among the vessels processed were the MT Tortuga, MT Wisteria, MT Lyric Magnolia, MT Lunaria and MT Constantinos, with shipments ranging from tens of thousands to more than 100,000 tonnes.

The authority said the volumes included local and transit cargo.

Officials attributed efficiency to the Kipevu Oil Terminal II, commissioned in August 2022, which has three berths capable of handling multiple vessels simultaneously, significantly reducing delays and demurrage costs.

“This addressed delays previously attributed to the authority. Tanker vessels now berth on arrival, subject to fulfilling prerequisites set by other government agencies,” Taiwu said.

KPA reiterated it does not oversee petroleum supply, licensing, or quality control, emphasising that those responsibilities lie with other agencies.

“Management of petroleum cargo supply, licensing and quality checks, as well as the country’s stock management, is not within our mandate,” Taiwu said, adding that there is currently no congestion linked to tanker vessels at the port.