The Kenya Pipeline Company is fighting to regain the market share it lost in East Africa last year following rampant fuel adulteration.
The company is now offering a 30 per cent discount on petroleum products in transit loaded for the Great Lake’s region at its Kisumu and Eldoret depots in western Kenya.
The discount targets Rwanda and Burundi — which last year opted to transport oil products by road from Tanzania’s Dar es Salaam port.
Energy Cabinet Secretary Charles Keter has approved a new tariff for fuel in transit loaded at the two depots at $41.55 per 1,000 litres down, from $59.32.
The new rates take effect next month and are expected to reduce the cost of doing business for oil marketing firms while protecting roads from the heavy toll caused by petroleum tankers.
Mr Keter said the new tariff will bolster regional business by strengthening Kenya’s ties with Uganda, Rwanda, Burundi, South Sudan and the eastern Democratic Republic of Congo.
“The move by KPC aims to pass on the benefits of its capacity enhancement in the western region to its customers as well as support regional trade by lowering the cost of doing business,” he said.