The DBSA made its first investment in Kenya through a loan facility to the Kenya Pipeline Company (KPC). KPC is using the funding to replace an existing, but very old 450km multi-product fuel pipeline running from Mombasa to Nairobi, which is the main artery feeding all imported fuel delivered at Mombasa inland to Nairobi for further distribution. The DBSA provided US$35 million of the US$350 million syndicated loan facility.
KPC operates approximately 84% of the fuel transportation market in Kenya and is also the primary transporter of refined fuel products to Kenya’s landlocked neighbouring countries Uganda, Rwanda and Burundi, as well as northern Tanzania, DRC and South Sudan. As such, this first investment in Kenya not only provides the DBSA with a footprint in this strategic East African market, but meets its objective of supporting critical infrastructure that enhances regional integration on the continent.