Kenya Pipeline Company has suffered a Sh2.8 billion loss following the drop in fuel consumption during this Covid-19 pandemic.
The Covid-19 guidelines imposed included movement restrictions in and out of Nairobi, Mombasa and Mandera; curfews and lock-down of hot-spots within Mombasa and Nairobi. This dampened petroleum sales and reduced the use of the pipelines to ferry the commodity hitting the top line by about 40 per cent.
KPC Managing Director, Irungu Macharia, told senators that they had already suspended fuel loading in two major depots, Nakuru and Mombasa. This is in their efforts to curb the spread of the Coronavirus which is a direct attribute to the revenue slump.
“The effect of Covid-19 led to about 40 per cent reduction in revenue. We are optimistic of total business recovery and growth as we restart the economy throughout the region,” Mr Macharia told the Senate Standing Committee on Energy.
The company throughput revenue was however up by 10 per cent in the 2017-18 financial year to 27.7 billion with the average revenue per quarter at about Sh 7 billion.
This puts a 40 per cent drop at about Sh2.8 billion with the figure expected to go over Sh10 billion for the rest of the year if Covid-19 persists.
Also Read: Kenya Pipeline Looking To Replace Top Managers Charged With Graft
KPC has also cut down its staff numbers to reduce exposure to the virus. This may impact the company’s productivity negatively in the long run.
“In efforts to safeguard employees’ safety, staff reporting to work were scaled down to 40 per cent and a fully equipped isolation unit designated at the KPC clinic,” Mr Macharia told senators.
Data provided by the Energy and Petroleum Regulatory Authority pointed to a drop in diesel consumption by 62.3 million litres over the same period as buses, lorries and tractors stopped their usual travels.
Email your news TIPS to Editor@kahawatungu.com or WhatsApp +254707482874
GIPHY App Key not set. Please check settings