The Ksh 1.8 Billion Kisumu Oil Jetty Scam Pulled by John Ngumi at KPC

Kenya Pipeline Company (KPC) contracted South Engineering Company (SECO) through tender number KPC/PU006-0T/17 to construct the Kisumu Oil Jetty which was meant to facilitate the transportation of oil through Lake Victoria to Uganda and Tanzania.

While Kenya has completed the same, the two neighbouring countries of Uganda and Tanzania have neither tendered for the construction of their end nor even shown willingness to do the same.

But of interest is the wanton waste and fraud pushed through by the KPC Chairman John Ngumi.

According to insiders, Kenya Pipeline bought all materials meant to be used to construct the jetty in 2001, just two years before the departure of President Daniel Arap Moi. 50% of the materials were stored at the KPC yard in Industrial Area, Nairobi, while the remaining were kept at the facility in Kisumu.

In 2016, John Ngumi started demanding “kitu cha kuuma” (something to chew) from key engineers in the state company, saying that he must also find something he can benefit from. Despite enjoying all manner of perks from the company including Ksh 2million salary (remember he is not an executive chairman) and various other benefits, he continually demanded other deals and forced through the Kisumu Jetty deal.

Before announcing the Kisumu Jetty tender winner, KPC disposed the previously bought materials which were in perfect state and meant to construct the jetty. Now insiders believe that the materials were which were sold as scrap metals were sold to the same company, South Engineering Company (SECO) which later used the same to construct the jetty and charge KPC exorbitantly. KPC paid a whopping Ksh 1.8 billion for the Kisumu Oil Jetty which might never work.

Analysts believe that with the materials which were available, KPC would not have spent more than Ksh 250 million if it constructed the jetty using own engineers. KPC would have spent a maximum of Ksh 600 million to see the completion of the jetty if it were to buy the materials afresh.

You’ll realise that John Ngumi has key interest in the jetty now that he brags about in every opportunity, even going as far as claiming that the jetty will benefit the people of Nyanza, something which is not true. KPC has not even thought of formulating a tender for the construction of barges to be used in transporting the oil on water and offloading them through the yet to be constructed jetty in Uganda and Tanzania.

KPC staff are requesting investigators to move with speed and confiscate the assets of SECO which is believed to be owned by associates of John Ngumi.

Leaving the Kisumu Oil Jetty to remain a white elephant will be a serious indictment on the legacy of President Uhuru Kenyatta and DP William Ruto.

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Written by Kahawa Tungu



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