Senators want six-month strategic oil reserve
The Senate Standing Committee on Energy said the framework should be developed in collaboration with the National Treasury and other relevant agencies and anchored on the National Oil Corporation of Kenya.
NAIROBI, Kenya — Senators have instructed the Ministry of Energy and Petroleum to allocate 12 months to devise a plan for the establishment of a national strategic oil reserve that could sustain the country's fuel consumption for a minimum of six months. The Senate Standing Committee on Energy made this directive, proposing that the framework should be developed in collaboration with the National Treasury and other pertinent agencies, with the National Oil Corporation of Kenya (NOCK) serving as the cornerstone.
The proposed framework should also delineate the financial plan for the reserve, the rotation mechanism for fuel stocks, and the governance and accountability measures necessary for its management. These recommendations were drawn up following the revelation of alleged irregularities in Kenya's fuel supply chain in March, triggered by global energy supply disruptions due to instability in the Middle East.
The senators underscored the government's need to prioritize the restructuring and recapitalisation of NOCK to bolster its role in securing the nation's energy supply. The committee expressed a strong desire for NOCK to lead the acquisition, management, and maintenance of strategic petroleum reserves, including the establishment and operation of storage facilities, either independently or through public-private partnerships.
The committee emphasized, "The Government prioritizes the restructuring, recapitalization, and strengthening of the National Oil Corporation of Kenya (NOCK) as the country’s strategic national petroleum entity, with a clear mandate to support national energy security objectives." Additionally, the senators urged the Energy Ministry to leverage the upcoming Dangote refinery in Mombasa for augmenting petroleum storage capacity and bolstering the country's strategic reserves.
They highlighted the potential of the refinery to enhance regional fuel supply security and lessen Kenya's exposure to future disruptions stemming from external shocks.
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