NAIROBI, Kenya, Aug 17 — Senators have given the Ministry of Energy and Petroleum 12 months to develop a framework for establishing a national strategic oil reserve capable of holding at least six months of the country’s fuel consumption.
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 (NOCK).
The framework should also set out how the reserve will be financed, how fuel stocks will be rotated and the governance and accountability measures needed to manage the reserves.
The recommendations are contained in a committee report on alleged irregularities in Kenya’s fuel supply chain that emerged in March amid disruptions to global energy supplies linked to instability in the Middle East.
The senators said the government should prioritise the restructuring and recapitalisation of NOCK to strengthen its role in securing the country’s energy supplies.
The committee wants NOCK to take a central role in acquiring, managing and maintaining strategic petroleum reserves, including developing and operating storage facilities either independently or through public-private partnerships.
“The Government prioritises the restructuring, recapitalisation, 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,” the committee said.
The senators also want the Energy Ministry to make use of the planned Dangote refinery in Mombasa to expand petroleum storage capacity and strengthen the country’s strategic reserves.
They said the facility could also help improve regional fuel supply security and reduce Kenya’s vulnerability to future disruptions caused by external shocks.
