INSIDE INSIDE CHANGES INTHE POLICY & REGULATORY LANDSCAPE The MagazineofthePetroleumInstituteEastAfrica VIVO EnergyKenya NewMDOutlinesVision New Mombasa-Nairobi Pipelinenowoperational KPC’s RoleinPreserving thePlanet Key to BoostLPGUptakeAdvocacy TES PRESERVING OUR PLANET TU A T C S O

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1st Quarter, January - March 2021 1st Quarter, January - March 2021 2 Vice Chairman-LibyaOilKenyaLimited P Kenya PetroleumRefineriesLimited .O. Box 8936-00200 Nairobi-Phone: 254-20-2249081,3313046, 3313047 Petroleum Insightispublished quarterlybythePetroleumInstituteofEast Africa. V National OilC Email: [email protected] - W Kurrent T Petroleum Institute ofEastAfrica-Fourth Floor Africa Gas&OilC Petrocity Energy(K)Limited East AFricanGasoilLimited iews expressedinthispublication donotnecessarilyreflectthe Galana OilKenyaLimited Galana OilKenyaLimited Kenya PipelineC Hass PetroleumLimited Gapco KenyaLimited Chairman -TotalPLC Mobile: 0722 221120 - Fax:254-203-313048 Hashi EnergyLimited Engen KenyaLimited Stabex International orporation ofKenya echnologies Limited V Gulf EnergyLimited Board ofDir KenolKobil Limited ivo EnergyLimited T position ofPIEA.Allrights reserved. Robert Paterson osha Petroleum V arun Sharma VTTI (K)LT SGS (K) BOC Gases o. Limited ompany ectors LT D D Itebaluk andRichardNandi Vivienne Ayuma, DanielMuasya, Dorice Wanjiku Manyara, JenniferMidumbi, Contributors Wanjiku Manyara andJenniferMidumbi Editorial Board Email: [email protected] 0723242440,0721234838 Tel -0202320083,0721845944 Kaunda Street 6th Floor, Town House, Alison andDavisGroupLtd Agency Advertising Editorial &Production John Ng’ang’a Bob Paterson Cooperative Bank Tristar Petroleum Kurrent Technologies Stabex International Lexo Energy East AfricanGasOil Tosha Petroleum (K)Limited VTTI Gapco Kenya Limited Africa Gas&Oil Hass Petroleum Kenya PetroleumRefineries Kenya PipelineCompany National OilCorporation Hashi EnergyLimited Galana Oil(K) EnergyLimited Gulf RUBiS Energy Total Kenya PLC Vice Chairman–VIVOEnergy Energy Chairman –OLA Board ofDirectors Tel -0716652011,0780011 Thika Superhighway 3rd Floor, MountainMall Jay andJeyMediaConsultants Views expressedinthispublicationdonot necessarily reflectthepositionofPIEA.All necessarily ebsite: www Petroleum Insight is published quarterly Petroleum Insightispublishedquarterly August Mwasame. Tony Ndolo,GideonRotich, Zoher Pirbhai,DanielMuasya, Kevin Adundo,EstherKiragu,HenryKahara, W C Kevin Adundo,TonyNdolo W Editorial Board- Email: [email protected] T Standard Street 6th Floor Alison andDavisGroupLtd Editorial, Pr P.O. Box8936-00200Nairobi-Phone: 254-20-2249081,3313046, 3313047 el -0202320083,0721845944 ontributors - anjiku Manyara,KimemiaMugo, anjiku Manyara,KimemiaMugo, Petroleum InstituteofEastAfrica. Petroleum InstituteofEastAfrica Email: [email protected] Website: www.petroleum.co.ke Fourth Floor,Fourth Bruce House , T Fax: 254-203-313048 .petroleum.co.ke Mobile: 0722221120 own House, , BruceHouse oduction &Advertising rights reserved.

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Cover story From theGeneralManager Statistics Upstream Pictorial

Proper Regulatory FrameworkKey To AdoptionofLPGinKenyan Households Total Kenya PLC InitiativesinPreservingThePlanet Co-op Bank’s Innovative FinancialSolutionsDrivingRenewable Energy Growth NCBA: Changing TheStorythroughTree Planting Why Businesses MustTackle Climate ChangeNow! KPC’s RoleinPreserving the Planet DT Dobie:SafeDriving MinimisesFuelConsumption Combat Climate ChangebyLoweringYour Carbon Footprint Kenya:VTTI ACommitment toSustainability TowardsEvolving aGreenerandCleanerCity How FuelAdditives ContributetoSustainability NCBA LeasingLLP FacilitateCorporationsFightAgainstClimateChange Climate Change: ImpactandInterventionsbyOilCompanies-Kenya In thisissue 4 8 1 34 37 29 30 10 2 6

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approximately Kenya Shillings 9 billion annual company contribution to Kenya’s economy. At risk of extinction are unique fish and bird species including flamingos which are an attraction for Kenya tourism sector.

While Lake Magadi has been drying up and though overshadowed by the current global pandemic, Kenya has since last year’s second quarter experienced flooding of at least 16 lakes which scientists and geologists have attributed partially to tectonic activities deep in the earths crusts and to human activities that have led to massive siltation of these lakes.

Wanjiku Manyara Intensified and irresponsible use of land has General Manager resulted environmental degradation and thus higher rain water run-off from land specially due to deforestation and less percolation of it to the e are living at a time when our environment underground water systems, leading to higher is revolting from degradation that is volumes of water flowing directly and rapidly from Wresultant from destructive human activities the land surface into the lakes. and unsustainable development. Thousands of families have been displaced, business Unsustainable infrastructure development has disrupted and tourism parks and conservancies adversely affected sodium carbonate mining in Lake submerged and infrastructure destroyed. The Magadi, where silt has occupied approximately 30% latter has high potential to disrupt efficient supply of the said lake and further Kisamis River which is a of petroleum and petroleum products and indeed mouth to Lake Magadi, has also dried up. Charcoal increase supply chain costs, considering that burning and over grazing have also significantly the areas around Lake Naivasha, one of the lakes contributed to erosion into this lake. affected by the flooding, has twenty (20) kilometers of road submerged in water. Due to the degradation of the environment around Lake Magadi on account of human activities inclusive Our industry has for centuries paid attention to the of deficient use of environment preservation environment and the care for it, that has intentionally technology in infrastructure development, the evolved from Corporate Social Responsibility to quality of trona has been downgraded thereby Environment Social and Governance. compromising Kenya’s competitiveness in the international market hence adversely affecting solid In this issue we have departed from the focus on sodium carbonate mining contribution to Kenya’s demand, supply and market outlook and instead economy. focused on the priceless space in which our industry operates from and whose habitants are consumers- Simply put at risk is the livelihoods of 50,000 our planet-which we all have borrowed from our community members, 600 employees and children and hence must preserve.

PRESSER On 7th April 2021 the East Africa Women in Liquefied Petroleum Gas (WINLPG) –Kenya Chapter was officially launched during the Petroleum Institute of East Africa (PIEA) and World Liquefied Petroleum Gas Association (WLPGA) Annual Summit.

Wanjiku Manyara will act as National Chapter Coordinator for the moment.

This brings the total number of WINLPG National Chapters (NC) to seven (Colombia, US, South Africa, Nigeria, India and Myanmar). It is expected that Brazil and the United Kingdom will launch their NC this year. Quarter, January - March 2021 Quarter, st 2 1 10% DiscountforPIEAMembers The aboverates are perissue, members onannualcontracts 5% offonannualbookings 15% DiscountforPIEA exclusive of VAT.exclusive Notes: ago, ithasbecomeaconsistent official journalofthePetroleum Since itsinceptionfifteenyears developments betweentheoil Institute ofEast Africa (PIEA). Petroleum Insightisthe and reliablechroniclerof and energyindustry. Half Page: Other Pages: Full PageInside(Pgs1–17): Double Spread: Back InsideCover: Front InsideCover: Back Cover: Advertising Rates(Kshs) Tel: +25420 2320083/0723242440 www.afripetequipment.com To Advertise Contact: Alt Email:[email protected] Alt Email:[email protected] Website:www.adgafrica.com Mobile: +254721845944 Alison and Davis GroupLtd Alison andDavis Kaunda Street, Nairobi 6th Floor, Town House

INSIDE INSIDE CHANGES INTHEPOLICY & REGULATORY LANDSCAPE The MagazineofthePetroleumInstituteEastAfrica VIVO EnergyKenya NewMDOutlinesVision New Mombasa-Nairobi Pipelinenowoperational Edition Startupper of theYear Challenge-Second Eldoret EAGOL opensultra-modern service station in are suppliedincludingallembeddedimageswithin. Please ensurethatallimagesandfontswithinthedocument We acceptimagessavedasTIFFs,EPSandPDFfileformat. Accepted imageformats basiscovering: publication, astrongmagazineonquarterly PIEA iscommittedtoproducingastrongandrespectable and generalreaders. players EAC regionwhereitispopularamongoilindustry trading block.Petroleum Insighthasaprideinplacethe tion ofEastAfricancommunity. Thisisahugeanddistinctive Since theglobalbusinesscommunitywitnessedintergra Circulation andreadership ideasusefultobusinessdevelopment. sharing constructive with decisionmakersinthecorporateworld,aviewto It encouragesinteractionamongPIEAmembersaswell increasingly influential. ingeneral.Petroleum Insighthasbecome and theoilindustry byPIEAmembers Enthusiastically andproactivelysupported players. issuesthatareofinteresttootherEastAfrican industry iary alsofeaturesotherauxil journal Exploration. Thequarterly of theenvironment,Taxation, CapitalandInvestment, concern distribution ofoilandpetrochemicals,governing These issuesincludeproduction,storage,transportation, developments betweentheoilandenergyindustry. ago, ithasbecomeaconsistentandreliablechroniclerof seven years inception its of EastAfrica(PIEA).Since Institute ofthePetroleumPetroleum Insight istheofficialjournal FUELING

Closing Date:Friday, 15May2009.CopyDeadline:Wednesday, 20May2009 Advertising ratesanddetailsfornextissue: April -June2009 and 300dpiresolution. andimages should be supplied inCMYK mode All information Colour modeandresolution are suppliedincludingallembeddedimageswithin. Please ensure thatallthedocument images andfontswithin We acceptimagessavedasTIFFs,EPSandPDFfileformat. Accepted imageformats Expandededitorialcontent Improveddesignandlayout newsand Strategicandwellresearchedindustry features. basiscovering: lication, astrongmagazineonquarterly a strongandrespectablepub to producing PIEA iscommitted general readers. players and EAC regionwhereitispopularamongoilindustry trading block. Petroleumhas aprideinplace Insightinthe of EastAfricancommunity.tion and distinctive is ahuge This witnessed theintergra- the globalbusinesscommunity Since Circulation andreadership ideasuseful tobusinessdevelopment. sharing constructive with decisionmakers in thecorporate world, with a view to among PIEAmembersaswell It encouragesinteraction increasingly influential. general. Petroleum in has become Insight and theoilindustry byPIEAmembers Enthusiastically andproactively supported issuesthatareofinterestto otherEastAfricanmotorist. try indus- also features other auxiliary journal tion. Thequarterly Taxation,environment, and Explora CapitalandInvestment, of the concern of oilandpetrochemicals,governing tribution dis- These issuesincludeproduction,storage, transportation, ments betweentheoilandenergyindustry. of develop- and reliablechronicler has becomeaconsistent it tute ofEastAfricasevenyears (PIEA). Sinceitsinceptionago, Petroleum of the Petroleum Insightistheofficial journal - Insti Expanded editorialcontent TImproved designandlayout E newsandfeatures. Strategic andwellresearchedindustry S TU the Skies A T C S O

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INSIDE INSIDE CHANGES INTHEPOLICY & REGULATORY LANDSCAPE The MagazineofthePetroleumInstituteEastAfrica - VIVO EnergyKenya NewMDOutlinesVision New Mombasa-Nairobi Pipelinenowoperational Regional news TOTAL Motor Show 2018 - - -

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1st Quarter, January - March 2021 1st Quarter, January - March 2021 C INDUSTRY NEWS will contribute to research evaluating (Africa) CLEAN-Air and Gas Circle between collaboration the Schultz, Volker Officer According to Circle Gas Chief Executive of Dar esSalaam. University the and (Kenya) University collaboration with Amref International by Prof. Daniel Pope and Dr. Puzzolo in (NIHR) Group at the University of Liverpool Research led Research Health Health Global CLEAN-Air(Africa) of Institute The projects will be run by the National leading PAYG LPGdistributorinTanzania. provides the technology for KopaGas, the PAYG LPG distributor in Kenya, and Circle Gas subsidiary M-Gas is the largest you-go technology. Africa using their smart meter pay-as- to clean, modern energy in Sub-Saharan Sign AgreementtoAdvance Healthand carry out research into the transition with the University of Liverpool to ircle Gas has signed an agreement Circle Gas-UniversityofLiverpool 4 Climate ImpactResearch oio fr LA-i(fia’ research CLEAN-Air(Africa)’s for horizon with the priority time coincide perfectly Their aspirations forambitious scale clean cooking through smart meter LPG. resource poor households that adopt economic, health and social impacts for Circle Gas to understand the potential “We are delighted to have partnered with clean cookingthroughsmartmeterLPG. resource poor households that adopt economic, health and social impacts for research group understand the potential added that the partnership will enable the Group director Professor Daniel Pope Research Health Global CLEAN-Air(Africa) reduce carbonemissions” hesaid. global health and living standards and improve to vision shared our on Air(Africa) “We lookforward to working with CLEAN- transitioning toLPGforcooking. consumers and on the environment of the positive social impact on Circle Gas modern energyforall” saidProf.Pope. Sustainable Development Goal 7 ‘clean focus: to provide evidence in meeting potential economic,health focus: toprovideevidence Development Goal7‘clean resource poorhouseholds perfectly withthepriority perfectly We aredelightedtohave that adoptcleancooking LPG. Theiraspirationsfor ambitious scalecoincide time horizonforCLEAN- in meetingSustainable Gas tounderstandthe and socialimpactsfor modern energyforall partnered withCircle partnered Air(Africa)’s research through smart meter through smart L investments” saidOnyonyi. putting in place the requisite policies, legislative framework and will enable each Country to fast track consumption of LPG by the world “to share knowledge, experiences and technology that and qualified highly experienced speakers, and more than 100 participants around together brought Fuel, Cooking Essential The virtual summit, with the theme LPG: A Reliable, Resilient and the useofLPGinAfrica.” hosted again this annual international LPG forum whose focus is on upscaling yet have we Liquefied Association(WLPGA), World Gas the Petroleum of collaboration with that, gratifying is “It General ManagerWanjiku Manyara. said Millicent Onyonyi in a statement read on herbehalf by PIEA target of Kenya’s public-private LPG penetration action plan” have a goodcase to transition non-LPG users to LPG by the 2028 we hence and kerosene and firewood charcoal, than cheaper is “We in Kenya now have data that proves beyond doubt that LPG towards transitioningnon-LPGuserstoLPGby2028. PIEA Chairman Millicent Onyonyi said that the industry is working World Summit, and virtual LPG Association(WLPGA) (PIEA) Gas Petroleum Africa Liquefied East of Institute Petroleum the During such aswoodandcharcoal. degradation, and economic challenges associated with bio-fuels of LPG to combat non communicable diseases, environmental The petroleum industry has continued tochampion for theuptake 6.7 kgsin2020percapita. latest data, LPG consumption has grown from 2.3kgsin 2012 to According to the Energy and Petroleum Regulatory Authority play acritical to role in providing clean, safe and affordable cooking fuel. continues (LPG) Gas Petroleum iquefied Advocacy Key toBoostLPGUptakeAdvocacy Chapter Coordinator. the distribution value chain.” said Wanjiku Manyara, WINLPG Kenya opportunities in the LPG sector as either entrepreneurs and in – Kenya Chapter. We look forward to seeing more women take up “These are exciting times for women as we launch Women in LPG would like toshareexperienceswithwomeninLPGKenya” We are very proud to launch the 7th one, Kenya Chapter and we Nigeria, United States of America, South Africa and Myanmar. the moment we have 6 National Chapters that is Colombia, India, to getinvolved in the decision making when it comes toLPG. At of Global Network to encourage more women around the world very few women are in executive positions, hence the launch majority consumers and users of LPG. WLPGA also noted that helping women get access to clean energy as they form the chapters is about “bringing LPG to women or women to LPG by Communications Director Alison Abbott said WINLPG national WLPGA Chapter, LPG Kenya in Women launching officially While 4. 3. 2. 1. reachable antidoteto; most the is indeed that proof economic and scientific sustained we erabecause will launch the EA Women in LPG-Kenya Chapter following the our Industry’s of moment is defining today a in Kenya, us certainly for specifically and Africa East in us “For lower incomebracket intheurbancenters. of LPG to promote affordability and accessibility to the rural and The industry, for zero rating through PIEA, continues to advocate gender equalityanddignifiedqualityoflifeforall” produce climate change mitigation and increase in our agricultural five water towers achieving 10% forest cover by 2030 and re-claiming of our and childrenoffiveyearsbelow eliminating preventable disease and death of 21,650 women INDUSTRY NEWS 5

1st Quarter, January - March 2021 1st Quarter, January - March 2021 V period. on separate dates within the promotion from a Shell service station together or to purchase fuel and another product attain a collabo, Shell customer will need for their entry to the promotion. In order to SMS confirmation receive and *494*100# upon which they will enter code to USSD Consumers will be issued with a voucher purchase of any shell products. Entry to the promotion will be through close inMay2021. nationwide. The 12-week promotion will welcome shops at Shell service stations Afrigas, and for shopping at Shell or Diesel, all Shell lubricants, Shell coolant, Shell FuelSave Unleaded, Shell FuelSave all customers for every purchase of “Weka Collabo” seektothank and reward Weka Collabo. the national consumer promotion dubbed country, rolled out the second edition of INDUSTRY NEWS and MDVivoEnergyKenya, PeterMurungi. Hans Paulsen, MD Motors Simba Corporation, Naresh Leekha Fuso F i truck are; L-R EVP Vivo Energy East & South regions, will end in May2021. Pictured here enjoying the grand prize a purchase of Shell products. This is a 12-week promotion that promotion will seek to thank and reward all customers for every national consumer promotion dubbed Weka Collabo. The Vivo Energy Kenya has rolled out the second edition of a “WEKA COLLABO” IsBack,withBigger “WEKA COLLABO” branded fuels and lubricants in the that distributes and markets Shell- ivo Energy Kenya, the company 6 South regions, Hans Paulsen thanked Energy Executive Vice President East and Speaking at the promotion launch, Vivo worth Kshs 100eachday. Kshs 5,000 and 400 winners of airtime five to weekly out 10fuel e-vouchers worth winners, daily given be will which double cabin pick up, 60 motorcycles Other prizes include a Mitsubishi L200b models inKenya. the franchise holders of all Mitsubishi Mitsubishi FUSO F1 truck from Simba Corp, Weka Collabo has been up-scaled toa The grand prize for the 2nd edition of the matatu. route, took home a brand new 32-seater -Nairobi(CBD) Dandora the of conductor driver, and Boniface Njuguna, his held in 2019, Laban Irungu, a matatu During the 1st edition of Weka Collabo May 2021. draws, culminating in the grand draw in There will be daily, and monthly weekly Weka Collabo,ShindaFusoF1! Rewards LPG SalesManager StephenGikonyo. Energy East & South regions, Hans Paulsen and Lubricants & Naresh Leekha, MD Vivo Energy Kenya, Peter Murungi, EVP Vivo prize a Fuso F itruck are;L-RMDMotors Simba Corporation, grand the off flagging here Pictured 2021. May 12 on end will purchase of Shell products. This is a12-week promotion that promotion will seek to thank and reward all customers for every national consumer promotion dubbed Weka Collabo. The Vivo Energy Kenya has rolled out the second edition of a dedicated customerservice. and technical expertise; and personal lubricants; industry-leading technological high quality differentiated fuels and in the country. These include Shell’s very best of Shell’s products and services Vivo Energy Kenya is proud to offer the boosting theireconomiclivelihood.” the prizes at stake will go along way in the journey with us in 2021. We believe a verytough 2020 and for continuing customers for walking with us through “This promotion is an appreciation toour prizes” saidPaulsen. amongst our customers through the on enabling the entrepreneurial spirit and services, as a Company we are keen products our of benefits the propagating drivers of the transport industry. Besides commitment to our customers who are the key our affirms Collabo’ ‘Weka their supportinthenewyear2021. extraordinary year 2020 and appreciated customers for their support during the T the sub-sector.” enable a robust business environment for universal access to sustainable energy and sub-sector. This is with a view to accelerate regulations is torestructure the petroleum of the draft mid and downstream petroleum “Allow me to state that the main objective regulatory function” saidBargoria. essential for the effectiveness of EPRA’s our stakeholders because your opinion is seekfeedback from for ustocontinually endeavour to realize this, it is important and reliable energy for all Kenyans. In our providing safe, affordable, sustainable, the energy sector in Kenya with the aim of “Our mandate as EPRA is to regulate, supervise and develop petroleum products. products, construction of retail stations and pricing of of petroleum facilities, road transportation of petroleum of petroleum products, business licensing, construction that the regulations seek to streamline the importation EPRA acting Director General Daniel Kiptoo Bargoria noted Speaking during a stakeholders workshop held in Nairobi, institutional reviews. contracts for common user facilities, and inclusion of enforcement requirements for theAuthority to approve constructed petroleum facilities, to demolish illegally penalties for offenses, increased power for the Authority and expand the legal framework to include - increased that will address inadequacies of theexisting regulations EPRA sought views onthe 11 draft petroleum regulations Petroleum Act2019. and downstream Draft Petroleum Regulations under the EPRA actingDirectorGeneral Daniel KiptooBargoria workshops across the country on the proposed mid in February 2021 carried out Stakeholder Engagement (EPRA), Authority Regulatory Petroleum and Energy he EPRA E nga Petroleum Regulations ges Stakeholders on Draft ges Stakeholders onDraft The draftpetroleumregulationsinclude: unlocking incredibleopportunitiesfortheenergysector.” to acceptable international standards and reiterate our commitment to “I reaffirm our primary task of ensuring quality regulation that conforms implement theregulations” hesaid. socio- on taxpayers to fund additional administrative structures needed to adverse significant have not economic impacts on the affected stakeholders impacts and adverse do regulations proposed the that ensure to (RIA) Assessment Impact Regulatory a conducted also in relation tothe mid and downstream petroleum regulations. KEPTAP Energy Act 2019, ThePetroleum Act 2019 and The Energy Policy 2018 “KEPTAP reviewed the Energy Act 2006 and regulations there under, The identify gapsandrecommendinternationalbestpracticesforclosure. undertook (KEPTAP) Project to review the current mid and downstream petroleum regulations to Assistance Technical Petroleum Kenya The acting D.G informed stakeholders that EPRA in collaboration with country. regulation and supervision of upstream petroleum operations in the industry that included expansion of EPRA’s mandate to include introduced changes in the regulatory framework of the petroleum The enactment of the Energy Act 2019 and the Petroleum Act 2019

h Ptoem Rti Sain osrcin n Licensing) and The Petroleum(StrategicStocks)Regulations,2020 Construction Station Regulations, 2020 (Retail Petroleum The The Petroleum(ProductsQualityManagement)Regulations,2020 The Petroleum(Pricing)Regulations,2020 The Petroleum(MinimumOperationalStock)Regulations,2020 Business and Construction Licensing) Regulations,2020 Facility (Lubricants Petroleum The Transportation Regulations, 2020 Road Petroleum of Business, RoadTankers andDrivers) (Licensing Petroleum The The Petroleum(InformationandStatistics)Regulations,2020 2020 Regulations, Products) Petroleum of (Importation Petroleum The Facilities) Regulations, 2020 Petroleum User Common of (Operation Petroleum The Construction Facility and Permit) Regulations,2020 Licensing (Business Petroleum The INDUSTRY NEWS 7

1st Quarter, January - March 2021 1st Quarter, January - March 2021 T INDUSTRY NEWS purpose to use LPG for their cooking. That way, we will reduce “I hope that our women in the modern manyattas will each from traditionalbiomassfuels. cooking to counter respiratory health ailments caused by smoke the area and urged them to use LPG as their choice of fuel for Manyattas made of interlocking blocks produced by women in has been promoting modern In the recent past, the First Lady your commitment”saidtheFirstLady. because of community level that have been successful largely implemented several projects at years, the we have continuously “The Governor and Iare very happy and proud of you. In the last 3 county whileatthesametimeapplaudingwomenefforts. at the various empowerment programs being undertaken in the Speaking during the event, H.E Edna Lenku expressed optimism environmental conservation intheCounty. for increased empower women while advocating to continuously office her by efforts several among is Lady, first County’s the of some of whom had never used LPG before. The move, a brainchild This was acomplete all rounded move for the elated women, inthequarteratNamelokandKimanaKajiadoearly County. Over 120 women received 6kg complete SupaGas in an event held Liquefied PetroleumGas(LPG)forcooking. NOCK EmpowersKajiado Women with LPG National OilCorporationofKenya Communication ManagerLawrenceNjengahandingovera6Kgs SupaGascylindertoawomaninKajiado over 120 women in Kajiado County thorough provision of with Kajiado County’s First Lady, H. E. Edna Lenku, empowered he National Oil Corporation of Kenya, through a partnership 8 resulting fromuseofbiomassfuelsandindoorpollution. upholding health standards through the reduction of diseases every household has access to affordable and clean energy, ensuring while of (7) seven number GOAL DEVELOPMENT SUSTAINABLE The partnership is key in the achievement of United Nations lubricants andLPGproducts. business opportunities that come with distribution and retail of The women and youth were further enlightened on the various agenda” notedNjenga. sustainable cooking source of energy to back the afforestation programs around afforestation while offering LPG asalong-term to clean LPG energy. In addition, we are keen on promoting kerosene and charcoal firewood, like fuels biomass of use the of with a keenchange in the society especially focus on transition “As a Corporation, we are committed to promoting behavior cooking energy. was important to the Corporation’s goal of ensuring use of clean Corporation’s Corporate Social Investment plan, thus the project Lawrence Njenga stated that empowerment is a key pillar in the Speaking during the event, National Oil Communication’s Manager with gas. cooking demos, answered questions and myths around cooking During the event, National Oil conducted gas safety training and continue toliveinahealthy lifestyle” sheadded. respiratory health ailments, eye problems caused by smoke and Alternative for scheduled calendar training (Under theExecutive Private/Group Sessions SPS001L SPS 001K SPS004G SPS003G SPS 001F SPS 004E SPS 004C SPS 003C SPS 002C SPS MIOG PIEA -WLPG SPS 007B Cost perperson permodule: US$50/ Kshs. we offer individualorgroup sessions which Cost perperson permodule: (US$100) / Scheduled calendar training sessions: are designed to fityour time anddate CODE Executive Private/Group Sessions: Online training charges: Kshs. 10,000+VAT only 5,000+VAT only workplace Reinventing yourself at the management Employee relationship Introduction to theOil&GasSector distribution Petroleum depots operations & sector course Risk management intheoil and gas Introduction to theLPGsector Emergency response plan (ERP) assessment Occupational health andrisk course security, andenvironment (HSSE) service providers health, safety, Petroleum sector contractor & Management Joint Incident Commercial Systems PIEA-WLPGALPGTraining Strategic customer service course schedule.) SCHOOL OF PETROLEUM STUDIES- SCHOOL OFPETROLEUM CALENDAR FOR TRAINING YEAR 2021 sessions: COURSE TITLE All Courses will beOnline viaMicrosoft teams/Skype PHYSICAL CONTACT TRAININGS(IN-HOUSEBASIS) (G) PETROLEUM PRODUCTS LOGISTICS &HANDLINGCOURSES (C) HEALTH SAFETY SECURITY ANDENVRIONMENTCOURSES Physical contact training/online training (E) LPGOPERATIONS SALES &MARKETINGCOURSES (B) OILANDGASRETAIL ANDMARKETINGCOURSES (K) HUMANRESOURCE MANAGEMENT COURSES (L) PERSONALDEVELOPMENT COURSES PIEAnon-memberKshs. 62,500 2 hours 2 hours 2 hours 2 hours 2 hours 2 hours 2 hours 2 hours 2 hours 3 hours DURATION 3-day course PIEAmember Kshs. 35,000 2-day course PIEA memberKshs. 25,000 PIEAnon-member Kshs. PIEA non-member Kshs. 30,000 +VAT Additional information: (F) RISKMANAGEMENT COURSES In-house courses: Kshs. 35,000+VAT 5-day course PIEAmember Kshs. Physical trainings charges: Module 2:Productivity Module 1:Reinventing your career Module 2:People management Module 1:Labor relations andleadership regime Module 3:Market supply chain andfiscal Module 2:Legal andregulatory framework Module 1:Product Knowledge Module 5:Health safety &environment Module 4:Supply chain management Module 3:Legal ®ulatory framework Module 2:Product knowledge &standards handling Module 1:Petroleum product storage and Module 3:Credit riskmanagement management Module 2:Foreign exchange andinterest risk Module 1:Insurance andriskmanagement opportunities Module 3:LPGinnovations &emerging models Module 2:LPGinfrastructure andbusiness regulatory framework Module 1:Product knowledge &legal Module 2:Formulation of anERP Module 1:Emergency response plan audit Module 2:Occupational safety andhealth Safety andHealth Act (OSHA) Module 1:Overview of theOccupational preparedness compliance Module 3:Emergency response planning and audit Module 2:Occupational health andSafety legal andregulatory framework Module 1:Contractor &service providers HSSE Module 1: Overview of customer service models Open courses: 40,000 +VAT 49,000+VAT +VAT +VAT +VAT N/B -Scheduled calendar training sessions: training isdelivered aspertrainee’s request -The training take place asscheduled inthe -Executive Private/Group sessions- The Contact usfor customized In-house and For enquirieskindly contact school@ ated are perperson basis andhave a calendar dates/time aslisted above. call 0722 221120 /020 224 9081 depending ontheir availability. minimum no. of trainees Open-course trainings. 21/5/2021 |10.30 a.m-12.30 p.m. 12/5/2021 |10.30 a.m-12.30 p.m. 19/4/2021 |10.30 a.m-12.30 p.m. 16/4/2021 |10.30 a.m-12.30 p.m. 15/4/2021 |10.30 a.m-12.30 p.m. 28/5/2021 |10.30 a.m-12.30 p.m. 27/5/2021 |10.30 a.m-12.30 p.m. 26/5/2021 |10.30 a.m-12.30 p.m. 25/5/2021 |10.30 a.m-12.30 p.m. 24/5/2021 |10.30 a.m-12.30 p.m. 29/4/2021 |10.30 a.m-12.30 p.m. 28/4/2021 |10.30 a.m-12.30 p.m. 27/4/2021 |10.30 a.m-12.30 p.m. 17/5/2021 |10.30 a.m-12.30 p.m. 14/5/2021 |10.30 a.m-12.30 p.m. 13/5/2021 |12.30pm-1.30 pm 17-18/6/2021 7/5/2021 |10.30 a.m-12.30 p.m. 6/5/2021 |10.30 a.m-12.30 p.m. 18/6/2021 |10.30 a.m-12.30 p.m. 24/6/2021 |10.30 a.m-12.30 p.m. 23/6/2021 |10.30 a.m-12.30 p.m. 30/6/2021 |12.30p.m-3.30 p.m. June 2021 June 2021 petroleum.co.ke or DATE 9

1st Quarter, January - March 2021 1st Quarter, January - March 2021 A COVER STORY that we are embracing renewable energy solutions particularly the importance of climate change mitigation. It is for this reason Energy, weunderstand At OLA the impact of climate change and death)andreductioninworkproductivity.(and possibly patterns manifesting through direct effects such as heat stroke weather andunpredictable ofexcessive effects with identified mediated health effects indirect, have been and systemically on human health is accumulating with time. A variety of direct, The observed clear evidence of the impacts of climate conditions impacts inthefuturewillbedifficultandcostly. Without urgent and drastic action today, adapting to these scope andunprecedentedinscale. parts of the world. The impacts of climate change are global in insome conditions freezing the extreme recently and flooding, security, torising sea levelsthat increase the risk of catastrophic Interventions byOilCompanies-KenyaInterventions Chairman, PetroleumInstituteofEastAfrica Energy General Manager, OLA Millicent Onyonyi fulfilment ofIMO2020cappingsulphur &SOxemissionstheindustry hasfacilitatedhandlingof fulfilment our time and we are at a defining moment. From shifting From weather patterns moment. that threaten foodproduction and defining a at are we and time our ccording to UN, Climate Change is the critical issue of Very LowSulphur FO(0.1%sulphur)inourfacilities.Thismakes ofMombasastrategic theport In responsetoaddressing thenegativeeffectsofsulphuremissionsin theen 10 Climate Change:Impactand for bunker operation and Fuelshandledintheregion. of Standards. This is aimed at safeguarding the quality of lubes participating in development of Draft Standards by Kenya Bureau OMCs through PIEA contribute in the industry standards by capabilities inlinewithmaritimegoodpracticesonmarinespills marine disaster. This is to ensure the industry has the required The agency provides a multiagency support in case of a which provides OMCs a platform for tier II &IIIoilspill response. (OSMAG) group aid mutual spill Oil Industry Oil the of part are We enforcement. engaging government and regulators on enforcement to ensure drivers and public on risks and how to mitigate. We are also educating staff and partnering stakeholders like customers, is industry The (SWOD). promoting use of clean energy,also actively LPG, particularly Disposal Oil Waste Safe ensured has resulting pollution. The partnership between PIEA and industry management of hazardous products to ensure no spills and In the pollution reduction front, we adhere to the strict more energy them efficient. to make buildings retrofitting and stations Renewable energy – we are piloting Solar energy at Retail Service relative toleadedfuels. leaded fuels which have less negative effects to the environment lead in Fuel. The industry was part of PIEA lobby to move to non- solar energy. We are also cognizant of the negative effects of port ofMombasastrategicforbunker operation. makesthe This facilities. our Veryin FO(0.1%sulphur) Sulphur Low sulphur & SOx emissions the industry has facilitated handling of capping 2020 IMO of fulfilment and environment the in emissions In response to addressing the negative effects of sulphur Sustainable Development bills. GHG emissions, increasing driver satisfaction and reducing fuel of performance enhancing additives. All this is aimed at reducing injection We through fuel, efficient an Optimium, introduced have improved services. designed ones which and consume appropriately less energy for We replacing ofaging equipment with arealsocontinually new fixture which consumelessenergye.iLEDfittings. lighting modern of energy use andembracing through measures conservation our operations, in equipment efficient rated energy selection of lessenergy consumption and properly Energy, we are keenAt OLA on energy conservation through Energy Conservation vironment and S Leasing provides its customers with As part of its value proposition, NCBA focus ontheircorebusiness. leaving Mitchell Cotts with enough time to commissioning and maintenance matters also supported the installation process, on their working capital. NCBA leasing no upfront capital outlay easing pressure from NCBA Leasing LLP and it came with Mitchell Cotts leased the Solar System the facility’s daytimepowerrequirements. caters 350KW for of power and now fully tied solar solution that is producing Exide Kenya designed the bespoke grid Chloride Solar, asubsidiary of Chloride day. grid during night time and solar during the and alternates the power source tothe System is embedded in the national grid their power bills by about 70%. The reduced significantly has solar to switch owing to handling of perishables and the have high power consumption generally Their core business and operations Kenyatta InternationalAirport(JKIA). roof top of their cargo facility at Jomo Exide, installed 1,080 solar panels on the In 2019, Mitchell Cotts through Chloride well asreduce the costofpower bills. energy to reduce its Carbon prints as Logistics Services has turned to solar Mitchel Cotts, a onestop shop for ontheirpremises. to thepowersupply renewable energy systems to contribute however today adopted and installed have firms (C&I) Industrial and Commercial applications. grid off and electrification perceived asan option for rural largely For along time, solar power was 300,000 domesticsolarsystemsby2030. year. The government is aiming to install installations is estimated at 23,046 TWh/ m2. The total potential for photovoltaic insolation of 4-6 kWh/ and average daily an average of5-7peak sunshine hours Kenya has high insulation rates, with viable. and economically considered large enough to be technically solar energy resource that is generally East Africa is among the regions with a resource. positioned to tap into is this uniquely NCBA LeasingLLPFacilitateCorporations against climate change and Kenya fight the in have we tools effective olar energy is one of the most Fight AgainstClimateChange Bank 2013 enterprise survey estimates power during power outages. A World diesel generators to provide backup Many onexpensive companies still rely energy. it represents a huge opportunity for solar toC&Icustomers. As such, andfalling solar directly options solar PV prices is accelerating sales of financing flexible A combination of high-energy costs, at lowerrentals. extend the lease into a secondary lease term, NCBA Leasing provides an option to up to date at the end of primary lease reliable and equipment. In case the equipment is still efficient more bring would obsolescence as the new technology of the lease term eliminating the risk of either during the lease term or at the end accords you the opportunity to upgrade the asset leasing that is benefit Another lower thanregularpowerbills. term and the cash outflows on rentals are tax deductibles over the lease are fully rentals as PV’s solar for option financing Leasing is becoming a more viable regular reportsonusage. their warranty obligations and provision of service support, ensuring they deliver on issue that require their input, after sales by liaising with service providers onany mandated to manage the leased assets dedicated Asset Managers who are leasing partnerfor many corporates. to clients, making NCBAthepreferred enabled it offeraffordableleasing solutions leasing andaccesstoaffordablecapital has The company’s longstanding expertise in infrastructure, PlantandMachinery. including Vehicles, Medical equipment, IT other classes of assets that they lease like Chloride Exide. This is in addition to packages in partnership with solar experts has come upwith innovative solar leasing agencies in Kenya. The leasing subsidiary to SMEs, corporate and government provides operating lease solutions subsidiary of NCBA Group PLC that owned NCBA Leasing LLP is a fully reliable andmodernenergyforall. provision of sustainable, affordable, number seven which focuses on the Nations’ sustainable development goal play a big role in achieving the United Solarisation of C&I facilities will therefore contributes toCO2emissions. intermittent switch to diesel greatly of energy consumption in Kenya, their 72 percent responsible for approximately Taking into consideration that C&I’s are hours oflostproductivity. power outages in amonth, totalling 24 that businesses experience up to four percent of their electricity. Itis estimated 15 provide to generators diesel use firms that 57 percent of Kenyan manufacturing 11 COVER STORY

1st Quarter, January - March 2021 1st Quarter, January - March 2021 COVER STORY T legal specifications. to upgrade base gasoline and diesel beyond specific impact performance features on fuels. They are used that formulations complex are multi-functional additives based on contribute to sustainability? Fuel additives So, what are fuel additives and how do they enhances customerloyalty. as it creates more business as well as margins profit it’s to due globally successful This business model has been found to be from competition. differentiate themselves to fuel additives to add value to the fuel and For this reason, oil companies have turned disadvantageous. strategically onprice has become and competing only Besides, the fuel margins have been shrinking about price. discerning and it is nolonger only price, but the customer has become more customers. Traditionally, competed on oil companies only them to create a fuelbrand, thus offering more value to their Fuel additives are important to oil companies as they enable BASF East Africa Ltd Technical Account Manager – East & West Africa Joseph Ndung’u stands atfouroilcompanies. increased over the years additives and currently has steadily he number of oil companies in Kenya that treat fuel with 12 How FuelAdditivesContributeto Sustainability By JosephNdung’u sustainability inthreemainways: From the foregoing weseefueladditives making contribution to generate morerevenuesaswellenhancecustomerloyalty. to create a marketfuels brand which they can effectively to Fuel performance additives are used by oilmarketing companies Benefits forfuelmarketers less pollutionisgenerated. engine consequently and fuel improved less burns engine efficient towards An efficiency. contribute all modifiers friction and Deposit control additives, lubricity improvers, cetane improver Benefits fortheuserandenvironment lubricity modifiers, friction improver andcetaneimprover. additives, anticorrosion dehazers, The responsible additives here are deposit control additives, Benefits fortheengine groups: 3 main into classified be can additives fuel using of benefits The fuel way abovethatofnormalfuels. It is such an array of additives that improve the performance of cetaneimproverand/orlubricityimprover.as welloptionally additives, corrosion inhibitors, dehazers and anti-foam agents, contain deposit control Diesel performance packages typically corrosion and modifiers inhibitors. friction additives, control deposit are The main components of gasoline performance packages rvnig h frain f eois ke cen fet. The effect). clean (keep deposits andthus of formation film the protective preventing fluid a forming by engines of system Fuel performance packages protect sensitive parts of theintake

Cost reduction Reduced emissions Improved fueleconomy (performance andprotection) (performance The steel finger tests below done according to ASTM D665 mod D665 ASTM to according done below tests finger steel The Steel corrosion can cause severe damage in pipes and tanks. 2. Protectionagainststeel corrosion Deposits onIntake Valve (IVD) the intake valves. performance package in on deposit control in an engine specially The graph below shows the effect of KEROPUR® gasoline 1. Depositcontrol experience. for better fueleconomy, lower emissions, and a better driving engines clean and protect sensitive parts of the fuel system These multifunctional performance packages worldwide. keep developers and suppliers of fuel performance packages Under the brand name KEROPUR®, BASF is one of the leading also inareductionofoverallcosts. combustion with less pollution, a longer engine life and therefore cleaner engine system results in better performance, improved _IVD in mg/valve The EffectofKEROPUR® additized fuel Keep clean effectofwell Clean Intake Valve well additizedfuel Clean upeffectof with nonadditizedfuel Deposit formation time inoperation

Emissions reduction (in % of base run emissions, fleet average) 10 15 20 25 30 0 5 6 ifrn tps f as 2 f ah ye ad a fr 64000 Keropur® gasolineperformancepackages. for ran and type) each of km. Clear emission reduction were obtained for fuel containing 2 cars, of types different (6 a customized KEROPUR ® package. In total 12 vehicles were used using test fleet a of results the are below depicted figures The 3. Emissionreduction packages. or NACE TM 0172 demonstrates the performance of KEROPUR ® Images =©BASF SE Email: [email protected] Manager –East&West Africa,FuelandLubricant Solutions Joseph Ndung’u is BASF East Africa Ltd Technical Account through theWorld-Wide Fuel Charter. additization recommended by car manufacturers is strongly contribute to both the life of the engine and tothe environment, In recognition of thepositive role that fuel performance packages

20 HC without KEROPUR® 24 CO

with KEROPUR® 13 NO x 13 COVER STORY CO 2 2

1st Quarter, January - March 2021 1st Quarter, January - March 2021 T COVER STORY change. combatting air pollution and climate charging as part of UNEP’s mandate towards fleets, taxi infrastructure and electric 2 &3wheelers electric buses, with the introduction of electric worldwide programme supports country projects and switch over to electric mobility. The income-countries with the introduction supporting more than 60 low-and-middle Global Electric Mobility Programme, Nuclear safety, is part of UNEP’s leading Environment, Nature conservation and the German Federal Ministry for the the International Climate Initiative of The pilot project which is funded by electric mobilitywithintheregion. kind spearheading the transition towards its of first The Kenya. in pilot motorcycles Evolving TowardsEvolving aGreenerandCleaner grounds. Power CEO and Cristina Boelcke Friend ofKarura at the launch of the UNEP electric mobility programme held on March 2nd at the Karura Forest toright: UNEP Deputy Executive Left Director Joyce Msuya, His Excellency Prof. Anyang’ Nyong’o Kisumu County Governor, Mr. Bernad Ngugi Kenya UE) eety anhd h first public and private the sector electric launched recently (UNEP) he UN Environment Programme 14 the growth of motorcycles within East This pilot project comes atatime where &3 wheelers. electric mobility in Kenya, starting with 2 sustainable shift to low-emissions the right policy frameworks to see a operation to help policymakers develop various aspects ofelectric motorbike The objective of this pilot is toevaluate Kenya. 20 SMEs working onelectric mobility in academia, press, civil society and at least Authority as well asrepresentation from the Energy and Petroleum Regulatory Authority, the Acting Director General of National Environmental Management Authority, the Director General of the the National Transportation and Safety attendance of the Director General of year at the Karura Forest grounds saw The launch that took place in March this City over ceremony inthe presence ofkey Friends of Karura in a distinguished hand- Kenya Power & Lighting company and partners; Power Hive, Kisumu County, and distributed them to the four pilot ltd) (SSCC Limited Company Car Shenling pilot project by TAILG part of the Shenzen electric motorcycles donated for the At the launch event UNEP unveiled the improving airqualityandlivingstandards. and injecting the city with fresh new life, huge leap forward towards clean mobility to electric motorcycles will be taking a car or light truck. Making this switch polluting the air per mile than a passenger average motorcycle isten times more reveals that the A recent UNEP study pollutive. extremely and inefficient very built of old technology, poor quality, vehicles. These motorcycles are often Africa has now exceeded that of private UNEP’s DeputyExecutiveDirector. create green jobs ”said Joyce Msuya , greenhouse gas emissions, as well as will reduce costs, air pollution and Rwanda, Uganda and elsewhere “Shifting to electric bikes in Kenya, leaders and membersofthepress. business officials, government Kenya Health, Safety and Environment Manager, VTTI Esta Mwaloma mobility and injecting the mobility andinjecting more pollutingtheairper car orlighttruck.Making improving airqualityand reveals thattheaverage city withfreshnewlife, motorcycle istentimes forward towards clean mile thanapassenger this switchtoelectric A recent UNEP study A recentUNEPstudy motorcycles willbe taking ahugeleap living standards. VTTI Kenya:VTTI ACommitmentto Sustainability vehicles tobeelectricby2025. registered target of 5% of all newly vehicles to help meet the government’s electric for incentives fiscal implement to reiterated the government’s commitment and Infrastructure, James Macharia The Cabinet Secretary Ministry of Transport transport systems. support the shift towards sustainable required from country governments to necessary collaboration and support transport infrastructure and the increased investment in non-motorized He emphasized the importance of mobility inKenya. supporting the transition towards electric Topping highlighted the importance of Level Climate Action Champion, Nigel At the same time, UK government High vehicles are cheaper to fuel and maintain. because electric billion by 2050, largely motorcycle owners a combined US$ 350 towards electric motorcycles would save calculator also revealthat the global shift the United States of America. The Emob the annual energy-related emissions in dioxide emissions, morethan double could prevent 11 billion tons of carbon global shift to electric motorcycles UNEP’s Emob calculator reveal that a A ways toimproveonthatfigureinthefuture. –we savings power significant reduced our consumption by 30% in 2020 – and we arecommitted in todevising new resulted has project The source. energy this of with remote monitoring and diagnosis ensuring the reliability and maximum utilisation inouroffice and racks buildings with LED. In December 2019 the truck-loading we converted our office facilities to solar power,on lighting fluorescent all replaced also practical, we switched to gravity transfer in our product movement operations. We a result of that process, we implemented a number of measures. Where it was our consumption patterns and consider steps we could take to reduce them. As To conserve energy, we carried out an energy audit of the entire facility to understand use, waste separation, andthehealthofourteam. storage in total – focuses on four key areas: energy conservation, reducing paper Sustainability at VTTI Kenya’sSustainability at VTTI Mombasa terminal – whose ten tanks offer 111,000m aspossible. and conductouroperationsassustainablyefficiently for the years to come,weneed to ensure we minimise our impact on the environment to ensure our long-term success. While the products we store are necessary environment. Sustainability is about taking the right choices, in the right way, Kenya,t VTTI we see sustainability as much more than caring for the By EstaMwaloma the country. security and creating green jobs across reducing air pollution, improve energy mitigation and energy conservation by programme’s efforts in climate change expected to expand the UN Environment place in four locations in Kenya, is The electric mobility pilot project taking using lithiumionbatteries. consulting boda-boda operators and energy, setting up charging stations, challenge may betackled by using solar distribution networks are inadequate. This in rural areas, is high, particularly However, while demand for motorcycles to sufficient is support thecharginginfrastructure. capacity generation infrastructure. Kenya’s electric power investments in battery charging mobility in the country will require Scaling up the transition to electric preserve ourplanet. increase in carbon-dioxied emissions and electric mobility is essential to curb the middle-income towards the transition to a result, theparticipation of low-and- in low and middle-income countries. As vehicle growth projected to take place with more than 90percent of future 2050, by double to set is fleet global The 15 COVER STORY 3

1st Quarter, January - March 2021 1st Quarter, January - March 2021 performance but also makes uslookat effort not just improves our environmental see this effort taking shape. Our collective Throughout our international company, we more carbon-neutral in our operations. we are further investigating how to become Building on our energy conservation effort, Our way forward overall healthandhappiness. the risk of chronic diseases and promote action. The long-term objective is to reduce activity are other components ofthis health checks and promoting physical instead of high-sugar soft drinks. Regular instead of sugary snacks, healthy juices with enabling access to healthy food:fruit Kenya,needs to besupported in the workplace. At VTTI this starts Sustainability is also about people. Promoting a healthy lifestyle supports theprinciplesofcirculareconomy. community’s waste reduction targets. To Kenya that end, VTTI waste valorisation chain and, ultimately, contributes to our resources, dwindling reduces emissions, pollution and contamination, supports the protects landfill, to sent is that waste of Recycling, reusing and reducing waste minimises the amount printed documents. our use ofscreens formeetings and presentations instead of recycled paper whenever possible. In addition, we have increased to think twice about whether it is necessary to print - and to use Kenya,trees are spared. At VTTI we have encouraged our people easy way toreduce waste in the workplace. By recycling paper, environmental problems, so paper recycling is an obvious and global warming, soil erosion, habitat destruction and other Cutting down carbon-absorbing trees contributes to COVER STORY We way isthe only believethat workingsustainably toachieve 16 the communities that we are part of,ourbusiness andour the communitiesthatwe arepart long-term successforour colleagues,theenvironment, stakeholders Solar panelsinstalledoverthestaffparkinglottogeneratepowerforterminalofficebuilding. and ourstakeholders. environment, the communities that we are part of, our business wayonly to achieve long-term success for our colleagues, the other stakeholders. We is the believe that working sustainably working with and supporting the communities we are in, and with our commitments extend to the world outside our company, We are committed to working towards a sustainable future and the longer-term ambition steps now as and we evolve learn more. We will continue to take pragmatic but meaningful sustainability groups onsustainabilitywherepossible. more informed decisions. We seek to engage key stakeholder considering stakeholders’ views and challenges helps us make of our stakeholders as well. Sustainability has many faces and examining what sustainability looks like from the perspective Recognising the wide scope of sustainability, we have been re- opportunities. energy use in a newand different light, showing the way tonew A effective andeconomicaloperation. connected to Solar power to have an power, it isnecessary to get the same the station and the oneconsuming more fuel dispensers are the critical part of companies in renewal energy. Since the of the grid and showcase expertise of oil on solar system are more independent The service stations and fuel dispensers the loadduringpowerblackouts. installed standby generators to sustain experiencing power blackouts have day. Businesses like petrol stations during the in some areas especially blackouts power causes fluctuation This areas like industriesandsomeoffices. the busiest residential areas to supply during the day in some OFF especially hence some loads must be switched peak hours ishigher than the generation, The rate of electricity consumption at countries. national energy capacity of most African will exert unprecedented stress on the demand to satisfy Africa’s growing needs, combined with an increasing energy This substantial demographic growth, an averageelectrificationrateunder30%. crude oil and natural gas reserves. With accounts for over 11% of the world’s largest natural resources. It frica is home to someofthe world’s Combat ClimateChangebyLowering Your CarbonFootprint AC voltage. from DCvoltage to switching power use of inverter for losses due to transmission consider the high must carefully the station also technologies, renewable energy most promising one ofthe regarded as stations are powered gas While Solar battery bank. work on DCvoltage taken fromthe directly resulted in dispensing unit designed to dispensing unit. The intensive R&D has the to dispatch power the to efficient are the solar system installed at the stations distribution and transmission losses in that reduction in analysed had carefully in fuel industry over 100 years experience of Tatsuno with its model An innovative dependence onfossilfuels. turn every one of us, it also reduces our combating greenhouse emissions and in solar system helps the environment by 4 years. While Solar dispensers and return on investment is lower than repayment of initial investment. The from Tatsuno dispensers, the quicker savings on power bills higher monthly The above advantages ensure that e. d. c. b. a. Key advantages stations withTatsuno dispensers. powered standard dispenser at the Comparison of the conventional Solar

requirements offuelstation. also supports lighting and other An additional electrical power for powerbackup. take and/or rainy care ofcloudy days The system could be designed to failure indispensingunits. on account of electronic/electrical Zero down time and no lossofsales cost ofownership. dispensing unit ensures lowest total Uninterrupted and quality power to panels. of DC to AC conversion from the Solar run on DC electrical power, no need The dispensing unit is designed to 17 COVER STORY

1st Quarter, January - March 2021 1st Quarter, January - March 2021 A COVER STORY subjected to morethan 60 million Mercedes-Benz Actros has been it isupand running. The new earns money when As atruck only manufacturing robustvehicles. new vehicle technology and has become famous for pioneering For over 100 years Mercedes-Benz reputed truck manufacturer.highly longest established and most from the experience of the world’s stems model new the in Confidence four percent. model has been reduced by up to and the fuel consumption of this competitive becomes increasingly business transport The efficiency. benchmarks for performance and fuel The latest Actros sets new and minimizingfuelconsumption. trucks with emphasis on safe driving prime movers and Hyundai light drivers of purchasers of Mercedes premises provides courses for the training centre at theLusaka road Benz Actros prime mover trucks. The Vivo saloons to the giant Mercedes- compact four door Volkswagen Polo offerings range in size from the exhaust emissions. TheCompany’s international standards covering Commercial Vehicles -DT Dobie Driver Trainer, Mercedes-Benz Heavy Fleet Management Consultant/ Joe Mungai fiin ad et orexceed meet, and efficient serviced by DT Dobie are fuel ll the vehicles sold and DT Dobie:SafeDrivingMinimisesFuel 18 spare parts. by stocks of genuine technicians backed trained engineers and staffed by factory The workshops are centres countrywide. dealers and service and Kisumu with Mombasa, Nakuru and at branches in facilities in Nairobi after sales service state of the art DT Dobie has spares. of factory trained technicians and supervisors who have access to large stocks of genuine Company has The fuel economy. and workshops in Nairobi, Mombasa, Nakuru and Kisumu with the latest equipment for the use performance good from benefit continually to Dobie Regular maintenance, servicing and repairs help owners of all the vehicles supplied by DT servicing ofMercedescarsandtrucks. established over 45years ago as the venue for instructing technicians on the repair and Volkswagen of cars, pick-ups and vans. This tuition is based on the DTfleets Dobie training centre which was of buyers of employees the to extended been now has training Driver the latestfeatures.” technology makes and it takenecessary for drivers to familiarize themselves advantage of different from those which have been on the roads for 20 years. The advancement in vehicle vehicle to beable tominimize fuel consumption and wear and tear. The latest trucks are very “Trucks cost the owners a great deal of money and the driver needs to understand the reasons behindthedrivertraining. driver maintains the value of thetruck.” JoeMungai, the DT Dobie Driver Trainer, explains the life of the truck. As hehandles the vehicle from the time it leaves our showroom training the investment. Apart from proper servicing, the driver is the most important contributor to the “When DT Dobie sells atruck to acustomer, wewant the customer toget top value from his pride inbeingagooddriverandsafetyfortherespectingofotherroadusers. taking professionalism, of issues driving, efficient fuel features, vehicle various the on focus get the best service out of them. The training combines driving and theory sessions which and Hyundai light trucks, DT Dobie trains drivers to understand the vehicles so that they can To ensure good results from the latest technology and capabilities of the Actros prime movers reduce windresistance. Mercedes which car bodiesincludes have under well-honed car aerodynamics protection to gives theownerstrongacceleration,speedandalowfuelbill. engines. For example the four door luxury Mercedes C180 model has a1500cc engine which latest Mercedes Benz passenger car models have been equipped with smaller turbo charged With the object of achieving class leading performance and reducing fuel consumption, the best possiblefuelconsumption. Automatic mode most of the time, but it alsohas the option for manual use resulting in the The power shift gear change system allows the truck to bedriven in four transmission modes. endurance testing. summer and winter trials at extreme temperatures, millions of kilometres on rough roads and test kilometres. The unrelenting test programmes included fuel consumption calibrating, Consumption the periodJanuarytoDecember2020. and illegal fuel trade was found in 46 sites during services inallthemajortrading portsandterminals accredited independent inspectionlaboratory 4887 kerosene volume marked, atotal of volume, anadditional149,655,220domestic With 2,701,515,118litresinexportproduct products companies intheworld. some of themost successful petroleum experience inbrand protection programs with partners, we have over 20years of type of lubricant counterfeiting. Withour comprehensive solutionsto combat every anti-counterfeit programs, that candeliver Intertek provides brand protection and Intertek isamarket leaderin Kenya FuelMarking&MonitoringProgram [email protected] petroleumretailoutletvisitedfortesting A frica, offering fully intertek.com +254 737882 299 +254 729474 369 19

1st Quarter, January - March 2021 1st Quarter, January - March 2021 K COVER STORY cost report, electricity costs from utility-scale solar photovoltaic According to The International Renewable Energy Agency’s (IRENA) viable option. biomass, geothermal, hydropower and solar, it presents the most spectrum of renewable energy spans from sources such as wind, that meets KPCs objectives on a number on fronts. Because the is This benefits. multiple because the use of renewable accrue energy is a multifaceted approach will operations our power to major cost driver for the company. Adoption of renewable energy power to drive its operations hence the cost ofelectricity is a energy intensive activity. Our Company on the utility relies solely Transportation of petroleum products through pipeline is an and sustainableenergysourcestodriveitssystems. from this backdrop that we at KPC intend to explore renewable synergy means new ways of thinking and doing business. It is Ports Authority and Kenya Railways Corporation. Achieving this national transport logistics network through synergy with Kenya is even more integral in establishing a seamless and coordinated With the launch of Kenya Transport and Logistics Network, our role nexus. the hinterland, KPC is well placed in the energy-transport-trade cost means oftransporting petroleum products from Mombasa to least and safe reliable, efficient, most the with economy Kenyan Managing Director, Kenya PipelineCompany Dr. MachariaIrungu na ieie opn (P) ly a rtcl oe n the the energy landscape. With a core mandate of providing the in role critical a energy sector and is cognizant of the transitions occurring in plays (KPC) Company Pipeline enya KPC’s thePlanet RoleinPreserving 20 By Dr. MachariaIrungu anticipated. wider sectorial objectives of the Kenyan government are also contribution to reduction in carbon emissions and achieving development, sustainable as efficiency, such benefits Multiple its business model while delivering value to its shareholders. project envisions an opportunity to build long term resilience in energy will have on the oil and gas industry, KPC’s solar energy While it is still not clear what impact a transition to low carbon efficient, that canwithstandtheexpectedimpactsofclimatechange. establish to aim sustainable world-class transport systems and logistic services which objectives change climate pipeline transport infrastructure therefore pairs well with other of GHG emissions by 2030. 17% Integrating respectively solar in because is This estimations are that the two sectors will account for 29.7% and (GHG). emissions gases greenhouse reducing and transport sector present the greatest opportunity for contribute to wider sectorial gradually objectives. The energy solarizing our operations, the By progressively company will consumption. and production responsible addresses which 12 No. (SDG) GOAL requirements but aligns well with SUSTAINABLE DEVELOPMENT enhance compliance with these legal recommendations not only renewable energy sources by the company. Implementation of The recommendations from these audits propose adoption of a statutory energy audit which is conducted every three years. gradual investment in energy saving programmes informed by the industrial sector. The Energy Management Regulations require in conservation and efficiency energy promoting towards geared opportunities for the company. The legal framework in Kenya is conveying petroleum products, adoption of solar presents other Beyond the immediate benefit of bringing down the overall cost of investment optionforindustrialimplementation. (USD cents seven 0.068) per kilowatt-hour (kWh) nearly in 2019. This makes it an attractive reaching year-on-year, 13% fell (PV) sustain the environment. As aresponsible corporate citizen, we financial and preserve to earn and positively lives transform to to also but profits only not prudently Company our manage We a cardinalresponsibilityoftaking careoftheenvironment. have we that fact the acknowledge we profits, make to business areas where we conduct our core business. As we go about our of long-term, positive relationships with these communities in mitigate potential negative social impacts through establishment The implementation of various development programmes seeks to barazas andvillagecommittees. social perspectives, we have been engaging through community the various from their cultural communities and and especially Kisumu. To understand the diverse needs and expectations of 14 traverses which counties from Mombasa through Nairobi, Nakuru to Eldoret and (ROW) Way of Right the along and stations those neighboring our installations; especially the Depots, Pump We with all thecommunities in Kenya collaborate closely and Sustainable Developments handed over Kshs. 20 million sponsorship cheque to the Nairobi County Government Health official. Industrial Area. Director Jinaro Kibet accompanied by Mr. Disterius Nyandika, the then Ag. GM Strategy, KPC sponsored the construction of a maternity wing at Lunga Lunga Health Centre in Nairobi’s KPC Board Chairperson, Rita Okuthe (3 sponsored throughhighschool. Scholarship program in which a boy and a girl from each of the 47 counties are selected and Persons with Disabilities Harun Hassan. Yearly, KPCsets aside Kshs 14 million towards the Inuka hands over adummy cheque of Kshs. 14million to the Executive Director ofNation Council for transport systemsandlogisticservices thatcanwithstand transport therefore pairswellwithotherclimatechangeobjectives which aimtoestablishefficient,sustainableworld-class Integrating solar in pipeline transport infrastructure Integrating solarinpipelinetransport the expectedimpactsofclimatechange. rd left) and Managing Director Dr. Macharia Irungu, (2 nd right) vi v Sports iv iii ii i the followingfocusareas; programmes and events aligned with implements various projects, A distinct Department of Foundation communities inareasweoperate. impact on the programs with positively that leads to natural sustainability of sense of responsibility is nurtured and strategic partnerships, a shared community priorities. Through such integrating both government and and people living with disability and empowerment of women, youth social inclusion through the Our key initiatives aim at addressing sustainable corporate conceptoflinked prosperity. through beneficiaries add value and transform the lives of offer support to social programs that We with communities and work closely social and environmental responsibility. are more conscious than ever of our students’ progress. monitor and review the regularly staff at the Foundation Department meeting other basic personal needs, Besides paying school fees and special schools across the country. under the program, spread in various Currently, there are 376 boys and girls disabilities. children living with various forms of one in program supports education for form batch January 2017, the Inuka scholarship first joining its with beneficiaries 2016 in Begun access secondaryschooleducation. forms ofdisabilities to enable them support children living with various education scholarship program to Kshs 14 million to support Inuka Every year, the Company sets aside living with disabilities in the country. empower women, youth and people social inclusion and hence seeks to and appreciate the importance of Through this program, we recognize Program The InukaScholarship Community Engagement Health andEnvironment Social Empowermentprograms Education programs Special Groups Empowerment 21 COVER STORY

1st Quarter, January - March 2021 1st Quarter, January - March 2021 C COVER STORY weather events, many worsened by the climate crisis. around the world continue to face devastating extreme breaking harrowing hurricane season, communities Australia and in the western United States and last year’s record- in wildfires seen have we world the Around exacerbated byclimatechange. In 2019alonethere were 15 extreme weather events, with 17 of the 18 warmest years occurring since 2000. ecosystems. The year 2016 was the warmest on record, the rapid rise of sea levels and endangering delicate faster than they did in the 1990s, contributing to Retail Director, LexoEnergy Sammy Maundu Greenland and Antarctica are melting six times the environment and climate change are grim. limate change is real. The news reports on Why BusinessesMustTackle Climate 22 Change Now! By Sammy Maundu a regulatory framework aimed at promoting environmentally sound To ensure minimal pollution, EPRA has been at the forefront in formulating another 33percentofglobalemissions. create that fuels the to addition in emissions (GHG) greenhouse-gas made The Oil and Gas industry’s operations account for 9percent of allhuman- Pollute less consumption. solutions across our various stations in a move aimed at reducing energy At Lexo Energy we have effectively employed use of energy efficient lighting to lessthan2 about achieve could 40% of the emissions reductions required by 2050 to limit global warming gains efficiency Energy important. so is use energy performance may begreat for the bottom line, there’s another big reason energy improving While energy. saving by year each 2-10% by profits their 0C. Pollute lessandGogreen. addressing three key concerns namely, Use less Energy, Our strategies and actions should therefore be aimed at of thesolution. We are part of the problem, but we can and must be part change. climate against fight the contributeto and curve The oil and gas industry has a responsibility to bend the for allofus. stem the tide of global warming and create a new future danger. However not all hope is lot. There is still time to our world and putting the lives of allliving things in There is altering no doubt that climate change is rapidly outbreak in70years. outbreak that was deemed to bethe worst locust can be seen from the recent unprecedented locust conditions for the breeding and migration of pests. This tropical cyclones have combined to create favourable and semi-arid areas, and strong winds associated with risk. at also The increased temperatures, rainfall variability are in arid (GDP) Product Domestic Gross total of agricultural production which account for about 33% and Harvests difficult. more even growth economic and existing challenges with water security, food security The effects ofthese climatic changes have made already Nino (El flooding rains) andincreasingtemperatures. rainfall, unpredictable and irregular events like droughts which last longer than usual, This is evidenced by morefrequent extreme weather the livesofKenyan citizens and the environment at large. Closer home, impacting climate change is increasingly weather events. people, are at risk because of these and related extreme Eleven percent of the world’s population, 800 million Research has shown that companies could improve Use lessEnergy K This is especially true for millennials This who tend is especially to be much more they can also be extremely beneficial for winning over customers. goodfortheplanet, but Green business strategies are notonly Going Green inventory controlandincidentfreeoperations. the terminal to the service stations and ensures an effective quality of productchain and from services across the supply any product leakages into the ground but that also guarantees aims at real time detection the-art of technology that not only employed the use ofstate-of- Lexo Energy has additionally negative impactontheenvironment. commencement of any project. This mitigates against any annual basis for existing premises and is arequirement before submission of the reports to the Authority. This is done on an regular audits at station facilities, monitoring of compliance and We at Lexo Energy ensure compliance with these through operations take place. water and the entire ecosystem of the area in which oil and gas developments, including the potential impacts to the soil, planning for the impact to the environment from oil and gas development and operations. These regulations focus upon of the atmosphere to tackle the climate and affordable ways oftaking CO2 out biggest the of one as identified been has steps to plant more trees. Planting trees As acountry, we need to take deliberate manufacturing andaffordablehealthcare. affordable and decent housing, increased on ensuring food and nutrition security, Four agenda for 2018-2022 that focuses Vision 2030 and the Government’s Big and achievement of the goals of impact Kenya’s future development Climate change is likely tonegatively Arid andSemi-AridLands(ASALs). water availability, in Kenya’s especially major challenges for food security and and frequency of droughts will present Even the slightest increase in temperature predictable. rainfall will become more intense and less by 2.5ºC between 2000 and 2050, while suggesting that temperature will rise change with current projections vulnerable to climate is highly enya isoneofthecountries that NCBA: Changing the Story Through NCBA: ChangingtheStory Kenya Tree Planting agenda of attaining 10% forest cover journey in support of the government’s In 2018, NCBA embarked onareforestation 170million. major shortfallwithonly faces a but currently seedlings annually Forest Service needs to have 360 million by 2022. To achieve this goal, the Kenya an ambitious plan to reach a cover of 10% change, the government has rolled out planting trees in combating climate In realization of the importance of are drivingglobalheating. store the carbon dioxide emissions that crisis. As trees grow, they absorb and players intheprivate sectortoplantover50,000treesin Kibiko NgongForestandMichukiPark.Inaddition,with the efforts of its partners, theyplanted7million trees ofitspartners, the efforts Kenyans togrowtreesimprovethecountry’s forest as part ofanongoingnationalcampaigncallingonall as part Through #ChangeTheStory campaign,NCBAledother cover andreversetheenvironment changes would only hurtbusinessandourfutureinthelongrun. would only to ignore the reality of the impact ofclimate change, and that that advance climate change mitigation. Anything less would be reduction targets, measuring progress, and supporting policies This benefits. planetary can be donebymaking a climate action plan, setting emissions and humanitarian, business, for both corporates to take appropriate action to tackle climate change It is our therefore our responsibility as Business leaders and detrimental totheenvironment. therefore reducing over reliance on other energy sources that are focus areas is encouraging the use of LPG as an energy source Lexo Energy is at the forefront of going green. One of our major save theplanetatsametime. green trend to make more money, win over customers, and help Many companies are now taking advantage of the rise of this global warming thanmillennialswillbe. set bymillennials because they will be even more impacted by most likely followthe trend for preferring sustainable products sustainable products. Generations that follow millennials will out of four millennials are willing to spend more money on three environmentally conscious. It isestimated that roughly hs ilr is o h bns five- banks the engagement whose focus is to elevate to ties year strategy for community pillar This preservation. through environmental protection and Resources that supports the community pillars is Environment and Natural One of NCBA’s Citizenship thematic 30 milliontrees. conserve trees. The ambition is to plant consciousness of Kenyans to plant and to create amovement that awakened the #ChangeTheStory, NCBA’s call was rallying by 2022. Through a campaign dubbed 23 COVER STORY

1st Quarter, January - March 2021 1st Quarter, January - March 2021 setting up four model nurseries in four to support Kieni climate initiative by Moreover, NCBA has partnered with WWF byDecember 2021. should beready seedlings of tree batch first The forest. bridge and an access road through the of movement to the site, KFS put up a in modelling of the tree nursery. For ease and is also providing technical expertise where the nursery has been constructed other hand donated the 1.7 acres ofland its reforestation initiative. KFS on the 13 million towards the project as part of of quality seedlings. NCBA invested Kshs. (KFS) for continuous and affordable supply in partnership with Kenya Forest Services indigenous tree nursery at Karura Forest 2020, NCBA launched a onemillion In July environment changes. country’s forest cover and reverse the all Kenyans to grow trees to improve the an ongoing national campaign calling on they planted 7 million trees as part of addition, with the efforts of its partners, Kibiko Ngong Forest and Michuki Park. In sector to plant over50,000 trees in NCBA led other players in the private Through #ChangeTheStory campaign, will encompassenhancingparticipation. #ChangeTheStory into a way of life which COVER STORY Tree NurseryLaunchon3rdNovember2020atKarura ForestNairobi. Peter Kinyua, Chairman Kenya Forest Service and John Gachora, NCBA Group Managing Director planting trees during the NCBA 24 to ensure that the saplings planted Part of the measures put in place ongoing floods. experiencing including drought and the of the issues we have seen the country country’s forest cover and change some across the country. This will improve the tree growing in the key water towers general tree planting but ensuring looking at The campaign is not only 10% forestcover. to take positive action in restoring Kenya’s public, corporates and peer organizations stakeholders; government, the Kenyan an open platform and invitation toall - a national campaign that provides campaign dubbed, Keep Kenya Breathing The pilot programme ispart of WWF-Kenya alarming rates. has seen these resources disappear at of water for farming and domestic use was once wellforested and with plenty beyond. Over the years, the region that communities in Laikipia, Samburu and source of rivers serving the downstream forest, an important water tower and The region is adjacent to Aberdare exotic treespecies). and indigenous (fruit, seedlings 100,000 schools within Kieni - Nyeri county to raise #ChangeTheStory. Together, let’s Go for it and their efforts. your support as they seek tostrengthen positive impact and would like tocallon reforestation efforts so far have had a possible. NCBA is pleased to seethat the these projects through various ways private and public sectors to support broader number of partners, both from NCBA Bank will continue to engage a and deforestation. resources and avoid further degradation to minimize thenegative impacts onthe trees but also protect existing forests plant more percent, we need to not only recommended UN tree cover of 10 If the country is to achieve the and pests diseases. fires, forests overgrazing, logging, encroachment, overexploitation, serious threats ranging from illegal climate change, forests still face Despite their importance in combating forest. empowering them to take care of the working with the local communities and survive and grow into trees is through R to these; there is the quality assurance aspect ensuring that the verification & sourcing Equipment to overcomegoingforward; in Kenya as below that working with our partners we can be able energy renewable of financing facing challenges some observed Despite the initial success, we have from the experience with various DFIs. facilities worth USD 38 million over the last 8 years in collaboration bank in the renewable energy financing where we have disbursed The strategy has enabled Co-operative Bank to beapioneer segments ofthesociety. energy space with a social mandate of giving solutions to all renewable the in partner financial a as mandate joint our fulfill to qualify using the financial models in the market. We are thus able require renewabledesperately energy solutions who may not The impact is that we can support sectors of the economy which who maynotin a normal credit scoring process qualify for aloan. appetite in lending to these sectors & giving solutions to clients help de-risk the banks exposure thus increasing the banks undertake initial credit scoring. The renewable energy partners in administration of loans & its ability to monitor re-payments & mandate core its Banking), Corporate SMEs, Consumer, & Saccos, Retail across (spread clients of network wide its forth brings are able to de-risked the projects through joint collaboration. The bank that products financial developing through Agencies, DFI – Development Finance Institutions, Insurance Guarantee with various renewable energy development partners such as Co-operative Banks approach has been in forging partnerships providing innovative financialsolutions. has been at the fore front in overcoming these challenges by to renewable access conserving & emission/carbon reducing. Co-operative Bank ingreater energy to help solutions that are sustainable, pollution reducing, energy solutions financial factors affecting these developments is the access to innovative abundance of these alternative sources of energy. One of the key power requirements in a clean & sustainable way based on the sources, Africa still has a clean slate to develop its nascent non-renewable through needs energy their of portion significant Unlike other areas oftheglobewhich have developed a has infinancingrenewable cleanenergy. challenges, baby steps, innovation and unique position Africa raising markets which is the USA. This brings to focus the finance successful & innovative most worlds the to access the talkedUSA and one of the rarely about pillars of his success is 2019. Elon Musk the founder is a South African immigrant to the with revenues climbing to $31.5 billion, up from$24.6 billion in has gained sizeable market dominance in the motor industry changes in renewable energy. Inashort span of 10years, Tesla motor industry which for alongtime seemedunaffected by the protection. A spectacular example has been its impact in the urbanization, economic growth, environmental sustainability & Co-op Bank’s Innovative Financial Solutions which continues togrow fueled by increased population, of focus in meeting future of global energy demands enewable & Clean Energy will continue to be a center Driving Renewable Energy Growth –There are three components markets theyservetodrivegrowthinrenewable energy. institutions to be innovative using their unique experiences in the financial based African for is potential only this unlocking The of country. means specific inAfrica each & continent the energy to renewable unique are of financing innovation. financial facing in problems position The its cement to Bank operative the growth of funding for renewable energy and enables Co- bedeviling This is a solution tosomeofthe challenges currently guarantee coverof80%. repayment ability. The lending will be backed by insurance current energy consumption payments as the means of analyzing model that doesnotrequire huge capital expenditures & using convert to solar or other green energy solutions by using a rental institutions, Agri processing institutions, Industries, Hotels etc. educational target will facility The Africa). South in based Group Co-operative Bank ofKenya and global leasing specialist Super Banks leasing subsidiary which is a joint venture between the rental lease structures with Co-op Bank Fleet Africa (Co-operative financing various clients energy needs through off balance sheet backed by insurance guarantees which involves the bank these challenges. The bank has a Green Energy Leasing Program various partners to comeupwith solutions that can address The good news is that Co-operative Bank has been working with projects. by experts in renewable been analyzed professionally energy & feasibility guides the bank in ensuring that the project has thereports on generated to ensure professionalism in the sector. The technical assurances indemnity professional financiers give to unable are field the in professionals isn’tFurthermore, as undertake these studies, the renewable energy space in Kenya sectors like real estate which have reputable companies that can Unlike developed financed. other being project the of viability the any project all financiers usually require an independent guide on Pre-Financing Technical & Feasibility Studies be redeployedforuseasasolutiontoanotherclient. would be an established channel toensure this equipment can tagged & traced. Even if recovery is possible the other challenge advanced is under distress since not all components can be for vandalism & theft leaving the need financier exposed incase the facility without self-secure finance additional security. The challenge isthat the security is prone to assets the have to be Security (e.g solar panels, invertors) pricing available. longevity & that our end consumer can negotiate for the best by trained professionals be serviced ensuring periodically its equipment will be replaced promptly, that the equipment will for the period of loan requested, in case of supplier defaults the we are able to be confident that the equipment will work optimally project a finances bank the when that ensures points above The source of components which also enables better supplier pricing. & after sales service. The third point of having end to end single to have the companies who provide the equipment give warranty’s other sector there are companies selling counterfeits. The ability producers who can verify that the equipment is genuine as in any components are from trusted sources that can be traced back to – The ideal model would – Prior to financing to Prior – 25 COVER STORY

1st Quarter, January - March 2021 1st Quarter, January - March 2021 E protect ourenvironment throughourprogramEcochallenge. sinks such as promoting the planting of trees to increase our forest cover and determined to beakey player in renewable energy and development ofcarbon and 17.3 million people have been impacted. Further to this Total Kenya is than 3.8 million solar lanterns and kits have been distributed since 2010 the problem to solutions long-term of energy access for low-income communities. Thanks to this program, more finding to view a with scale, large a on models business profitable and innovative develop and test to designed was Access to Energy program, with reliable solar lamps solutions. The program Total Kenya PLCambition has taken diverse approaches. Among them is Total more reliable,cleanerandaccessibletoasmany peopleas possible. economic development in Kenya byproviding energy that is more affordable, finding solutions to the challenge of climate change, while also supporting social and to committed are we ambition, Group the with line in Kenya, Total At 2019 andisexpectingtoreachfinancialclosein2021. The development. of stage last project company has signed a power purchase agreement with Kenya Powerin its under is that Project), PV (Isiolo county Total has been developing for years a 52MWp PVsolar farm project near Meru global temperaturesbelow2°C. international community to identify joint solutions for capping the increase in from dumpingand pollution. robust end-of-life management program thereby protecting the environment electrical and electronic waste disposal and recycling partners to ensure a In Kenya, wehave gone a step further to partner with established and tested emissions. solutions include economic, clean, and healthy-to-use energy with no harmful energy TOTAL’s of solar use quality from derived benefits The 2025. by million emissions of 460,000 tons of CO2. Our ambition is to impact an additional 3 kits impacting over 2 million people across the social spectrum and avoided By January 2021, Total Kenya PLC had sold 500,000 solar lamps and home Total Kenya launchedtheAccesstoEnergy program in2011. Access toEnergyPrograminTotal Kenya PLC COVER STORY Total Kenya PLCInitiativesinPreserving Strategy ManagerTotal Kenya PLC Jackson Ongubo with the society. Total joined with the industry has and proactively the company, Total commits to becomeaNet Zero emission company by2050 nergy plays a key rolein mitigating climate change. As abroad energy 26 the Planet By JacksonOngubo Lubricants OilBlending plantshallbedonein2023. Lubes warehouse shall be solarized in 2022 and the warehouse. Our other logistic facilities of Nairobi entire retail service stations and the Kisumu Lubes Total Kenya PLC will have solarized 70% of its now rangingat30-35%.Byend of2021 overall power consumption in the service stations is CO2 emissions and the ratio of solar power to the have managed to avoid an equivalent of 510MT 1,000 MWh. As a result of this solarized station we across the country producing total energy of almost by December 2020, we had 107 stations solarized Total Kenya PLC kicked off the project in 2017 and Renewables Total Kenya PLCaMajorPlayerin TOTAL Solarlampsunshinerangebrand customers atTOTAL stations TOTAL Solar lamp sunshine range being sold to or havingababy byplantingatree. a job, promotion, passing an exam, buying a car, getting married commemorate every important moment in their lives be it getting “one person, one event, one tree”, encouraging all Kenyans to sustain us.” The Eco Challenge campaign champions the idea of translated to mean “Trees are Wealth! Trees are enough to Hence, the campaign’s slogan “Miti ni Mali! Miti Tosha!” broadly indigenous forests can be used in many ways sustainably. Our Total Eco Challenge has emphasized that trees outside collaboration withthecommunities. and “enablement”. The tree planting activities are done in an action focus added. The two combining as “inspiration” planting, public education and awareness campaign with Launched in 2003, Total a tree Eco Challenge is essentially Total Kenya EcoChallenge Solar PanelsinstallationatGigiriTOTAL station Solar PanelsinstallationatEasternBypassTOTAL station Inverter installationsatTOTAL servicestations country. planting of 86.8 million trees between 2003 and 2019 across the and other partners Total Eco Challenge program has inspired the Since establishment and in collaboration with the community A past tree planting activity involving Total Kenya staff focus areaonClimate, CoastalAreasandOceans. Majoreni, Kwale County. Tree planting is in line with Total Foundation’s mangroves, at planted coastal area 3700 tree of seedlings, mainly Kenya Forest Service Kwale and the localcommunity, Total Kenya staff As part of the Total Eco Challenge program and in collaboration with at thecoast Kwale and the local community tree planting activity in Majoreni Area Total Eco Challenge program in collaboration with Kenya Forest Service 27 COVER STORY

1st Quarter, January - March 2021 1st Quarter, January - March 2021 L COVER STORY “We are confident that the continued enforcement ofthe enforcement of LPGfromthe current 6kgs to above 10kgs in line with the continued the that Regulations will ensure an increase in the percapita consumption confident are “We of LPGinKenya. govern the importation, transportation, storage and distribution which 2019 of Regulations Gas) Petroleum (Liquefied Petroleum Accordingly, EPRA has been at the forefront to implement the is notoptional. Foot Print. For this to be realized, a proper Regulatory framework therefore inevitable if the country is keen onreducing its Carbon The shift tocleaner alternative sources of energy such as LPG is traditional fuels. may well cost the household less to use than these competing for several weeks with regular household use. Over time, the LPG in plants bottling standard capacity cylinder sizes of 3,6and 13kgs that can last centralised in filled cylinder, full a purchase in small amounts forindividual cooking needs, LPG users must consumers. Unlike solid fuel and kerosene that can be purchased chain and purchasing constraints power of in the supply Uptake of LPG has been slowed down because of some Kenya’s forestresources. wood and charcoal usage has put biomass a strain especially on respiratory illness and in worst case scenarios death. Further, (HAP). pollution contributed to HAP,immensely leading to increased cases of air household reducing in Reliance on kerosene and biomass by rural households has key is LPG of Use households whoseLPGusageisat24percent. cooking gas as the main source of cooking fuel compared to rural that 54 per cent urban households in Kenya use commonly 6.7 kgsin 2020. The Kenya National Bureau of Statistics estimates per capita consumption of LPG has grown from 2.3 kgs in 2012 to Adoption ofLPGinKenyan Households h Eeg ad erlu Rgltr Atoiy ER) the (EPRA), Authority Regulatory Petroleum and Energy the of energy amongst petroleum fuels. According to data from sources cleanest the of one is (LPG) Gas Petroleum iquefied convened byEPRA. Stakeholders during a past consumer engagement forum on the LPG Regulations, 2019 Proper Regulatory FrameworkKeyProper Regulatory to 28 BYEPRATEAM safe and reliable fuel supply chain. safe andreliablefuelsupply of feasible infrastructure investment to establish and maintain a viable and scalable LPG sector while fostering the development Such rules create favourable conditions for a safe, economically essential to establish a viable and scalable LPG cooking market. rules, based on best practices and international standards, is and market ofregulations enforcement and definition Effective mobility inrecentyears. Carbon Footprint, considering the increased level ofvehicular Nairobi within and its environs. This is a good move towards reducing Kenya’s process the pilot to player (1) one approved has gasoline and gasoil in internal combustion engines. The Authority EPRA has alsofacilitated the use ofLPGasan alternative to approved onegatedcommunitytousereticulatedLPGsystems. increasing convenience, safety and affordability. Sofar EPRA has LPG is sold via a metered system at safe pressures hence Regulations are the use of reticulated systems in households. Further, other innovations that are supported by theLPG not needtoworryiftheLPGwillrunoutwithoutnotice. cylinder-exchange, are assured of a dependable source and do use of meters, the consumers don’t face the hurdle of empty pockets, thus providing the better alternative to Kerosene. By their fits that quantity the purchase to consumers enables and the electricity sub-sector. Such systems provide convenience that allow sale of LPG through a token-based system as is in three (3) investors to supply LPG through the use of smart meters To heighten LPG penetration in the Country, EPRA has licensed existing problemsintheLPGsub-sector.” local and foreign investors keen on providing new solutions to cooking energy such as LPG. EPRA will thus continue supporting that even the low-level income populations can afford clean “We acknowledge that innovation will play a key role in ensuring General DanielKiptoo. Government’s long-term strategy” said EPRA’s Ag. Director reduced. This will bring efficiency gains to gains consumers who will in turn enjoy lower prices. efficiency bring will This reduced. chain to ensureare constraints in the supply EPRA issupporting the National Government further expansion in the country. Further, regulatory environment will be essential to EPRA’s actions such as establishing a solid solutions well-suited to a range of tasks. ways that help to provide safe, sustainable innovatingThe LPG industry is constantly in strategies. LPG and the role LPGcan play in their energy at educating the masses on the safe use of Ya Gas” in 2020. The campaign was aimed LPG sensitization campaign dubbed “Stori in educating the public, EPRA undertook an Cognisant of the role that the media plays Lubricants packaging. that launched will traverse TOTALthe country publicizing the newly caravan roadshow a off flag Manager Affairs Corporate KenyaTotal Ayilo, Oliver Biyogo (R),Total Kenya Commercial Manager-Specialties & David refurbish theequipmentbeforedistributingittoneedy schools. stations, units. routers, CFSK will cameras & Uninterrupted power supply includes desktop computers, laptops, servers, printers, scanners, docking to Bonnie Mbithi, CEO Computer for Schools Kenya (CFSK). The donation Lawrencia Gichatha ,Total Kenya Finance Director hands over IT equipment Total rangeoflubricants roads repairs. the PIEA Secretariat in a joint inspection tour of Nanyuki and adjacent Energy, Eric Maranga Wachira- OLA – Vivo Energy and other members of (KURA) together with Jayne Murogo from Total Kenya LPG Plant, George Engineer Nicholas Chelugo (in suit) from Kenya Urban Roads Authority National Treasury. PIEA Secretariat defending the 2021 - 2022 budget proposals at the INDUSTRY PICTORIAL 29

1st Quarter, January - March 2021 1st Quarter, January - March 2021 G and this is projected to improve as costs continue to fall, further cost solution for the energy needs of many parts of the world chain disruptions. Lastly,supply green energy represents a low- and are not affected by geopolitical crisis, price spikeslocally or lead to stable energy prices as these sources are often produced available.gases and are often readily Secondly, Green energy can renewable and clean, meaning that they emit no greenhouse asthey are eco-systems making them environmentally friendly avoid mining or drilling operations that can be damaging to can take millions of years to develop. Green sources also often opposed to fossil fuel sources like natural gas or coal, which replenished, as naturally Green energy sources are usually burning processitself. green, due to the carbon it is produced not necessarily by the organic material from sustainable forests may be renewable, but industry are green. For example, power generation that burns This means that not all sources used by the renewable energy should not produce pollution, such as isfound with fossil fuels. UPSTREAM Strategy and Operations advisor specializingonEnergy Strategy andOperationsadvisor Daniel Muasya geothermal power. To bedeemed green energy, aresource through solar,especially wind, hydroelectricity, biomass, and reen energy is generated from renewable solutions We Need MoreThanGreenEnergyto 30 Preserve OurPlanet Preserve By DanielMuasya out theiractivities. approaches to considerwhile carrying environmentally friendly disposed after their shelf lives. Energy producers therefore need managed and notresponsibly storage equipment ismostly atwaste especially management phase where energy unfriendly and select green energy sources are found to be environmentally and other aspects of public lands. Additionally, both fossil fuel serious consequences on wildlife, human health, water sources and use, stages of fossil fuels as these activities can have refining extracting, at strategies friendly environment exploring important for energy players and Governments to continue work is still rising and thus the energy needs. It istherefore beabandoned. The need for heavy industrial cannot entirely slowing of upstream activities in Kenya, fossils fuel exploration Despite the continued push towards a shift to green energy and sustainable, andaffordableelectricity. inthe costs energy country thereby promoting the development of clean, reliable, of a reduction to led significantly has and this project is contributing about 2% of the national energy mix harness the region’s abundant solar energy resource. Currently, connected solar power plant in East & Central Africa developed to 50MW Garissa Solar Plant commissioned in 2020, the largest grid mini-grids and individual home solarsolutions. An example is the signing Power Purchase Agreements as well as through solar-fed through building projects that connect power to main the grid by this opportunity byeither partnering with the government launched in 2014. Inaddition, the private sector has exploited projects connectivity mile last and programs electrification rural wind energy to support its increased energy access initiatives like energy generation by prioritizing development of geothermal and resources in the country to seek the expansion of renewable on the abundant solar, hydro, wind, biomass, and geothermal energy producers in Africa. The government opted to leverage making the country one of the top renewables, clean, and green coming from hydrosources mostly and geothermal sources, Currently, 90%ofKenya’s energy is generated from renewable affect theenvironment inany way afterconsumption. replenishing and non-polluting source, additionally, it does not clean – since it comes from an environmentally-friendly, self- However, a source such as wind power is renewable, green, and and impact the local environment be called ‘green?’. really for example, can a hydroelectric dam which may divert waterways if evaluatedis true especially from an environmental perspective, as green energy, but there is still some debate as to whether this solar energy. Renewable energy is often seen as being the same being replenished, such constantly as hydropower, wind power or into the air, while renewable energy comes from sources that are Clean energies are energy types which do not release pollutants comes from natural sources, such as the sun, wind, water etc. green, clean, and renewable energy. Green energy is energy that Although used interchangeably, somedifferences exist between developing world. increasing the accessibility of green energy, in the especially management as the push to adopt environmentally sound Today, many cities continue to facethechallenge of waste Energy Waste Disposal humanactivities. during daily world to help in neutralizing carbon emitted in to the environment governments need to champion growth in forest cover across the reduce green house effect on the environment. In addition, enhanced usage of carbon in soil and vegetation will significantly in greenhouse horticulture, improved processing of manure and energy globally. In agriculture, adoption of sustainable heating be ofsubstantial value as transport is amajor consumer of like adoption of electric cars and other logistics enablers will sources transport sustainable and efficient towards accessibility and solar. Accelerated innovations in transport that enhance run-on sustainable energy fuels can likeeffectively hydrogen continued need for innovationenergy efficient machinery on that green house effect. In large industrial manufacturing, there is in controlling the efforts to reduce carbon emissions ultimately to bear fruits, it is important that the world joins energy producers efforts to halt exploration and production of fossil fuels continue harsh heatwaves, and health complications, e.g., cancer. AS temperatures to rise, leading to frequent and long droughts, These emissions trap unwanted solar heat causing the planet’s the extraction of natural gas through the method of “fracking.” manufacturing while another gas, methane, is released during and gas that fuels everything from most cars to heavy industrial released into the air through primarily the burning of oil, coal The most abundant type of greenhouse gas is carbon dioxide, Reducing GreenhouseEffect well ashumanhabitats. achieve minimum disruption on both marine and wild animal as environmental Impact assessments, and care, be carried out to out energy extraction and construction activities, proper It is of importance that as organizations continue to carry resources andrevenueneededtosupportthemselves. and increased cancer risk depriving communities of essential exposure to oil such as respiratory damage, decreased immunity sources of income due to the health problems associated with destabilised. Fishermen and local ship workers can lose their or disappearing altogether because of foodchains being to survive, with crops and food sources becoming poisonous on said ecosystems ecosystems impacts communities who rely through skin and eye irritation. In addition, contamination of local through ingestion and inhalation, both internally and externally Oil spills have devastating effects on both marine and wild animals these importanthabitats. other facilities built by oil companies can degrade and destroy supporting infrastructure which includes roads, pipelines, and green energy generation sources e.g., wind power projects and last two year in the same conservancy. Construction of several and dozens of birds had been electrocuted by power lines in the Nation (Kenyan newspaper) indicates that at least eleven giraffes by electric wirelines in February 2021. In addition, a report by The of giraffes were electrocuted in Soysambu conservancy in Kenya their movements. An example is acasewhere three rare species leaves could bebuilt on animal migration paths, hence disrupting communication, and evenbreeding patterns. Construction of way activities disrupt wildlife hence affecting their movement, rate. In addition, oil and gas drilling and extraction, and installation activities continue to deplete wild and marine habitats at a fast In aworld where forest cover is declining, increased energy WildlifeHabitats Preserving landfill. of prevention to theleast favored traditional disposal method of favored environmentallymethod sound option from the highly management processes of its activities and pick the most organizations and governments to think through waste To conserve the environment, it is therefore critical for or theenvironment. disposal mechanisms to avoid any chances of radiation to people of energy that generate radioactive wastes that require proper user materials. This is not the case in other complex sources consideration at the time of disposal e.g., bulbs and other end there are components in the value chain that need careful minimizing waste management at production phase, however, significantly. ecosystems Adoption of green energy remains as the ideal solution to to pollution environmental reducing distribution of non-biodegradable plastic carrier bags effectively 2017, kenya discontinued manufacturing, sale successfully and generation however, this may notbeapplicable in all cases. In The ideal waste management alternative is toprevent waste practices continue from the regulators and the civil society. Energy. [email protected] The specializing writer is Strategyon and Operations advisor adopted andemployedatevery phaseoftheseprojects. wasteand environmentally friendly disposal mechanisms are consumption energy efficient ensure everyone’sto responsibility to innovate new and green ways of energy generation, it is everyone in the society. Whereas the energy players continue Preserving the environment is a collective responsibility for Conclusion abandoned. Theneedforheavyindustrial consequences onwildlife,humanhealth, fuel andselectgreenenergysourcesare especially atwasteespecially managementphase found tobeenvironmentally unfriendly disposed after their shelf lives.Energy theirshelf disposed after refining anduse,stagesoffossilfuels work isstillrisingandthustheenergy a shift togreenenergyandslowingof a shift producers thereforeneedtoconsider public lands.Additionally, bothfossil mostly not responsibly managedand notresponsibly mostly environmentally approaches friendly Despite thecontinuedpushtowards upstream activitiesinKenya, fossils as theseactivitiescanhaveserious water sourcesandotheraspectsof where energystorageequipmentis fuel exploration cannot entirely be fuel explorationcannotentirely needs. It is therefore important for needs. Itisthereforeimportant to continueexploringenvironment while carrying outtheiractivities while carrying energy playersandGovernments friendly strategies at extracting, strategiesatextracting, friendly 31 UPSTREAM

1st Quarter, January - March 2021 1st Quarter, January - March 2021 T UPSTREAM rt-fs wih oae $8 mlin (KSh106 million billion). $987 totaled which write-offs, Kenya half of the exploration accounted for nearly operations inthecomingyear. in delays major cited the Kenya project among the key risks to its also has firm British The the country. significant a to addition reduction in the activities Tullow is undertaking in in are write-offs The their money. currently, they are likely totake longer to recover price of oilin the international market, meaning recoup from their investment hinges on the The amount of money exploration companies Covid-19 Pandemic,makinginvestors jittery. an average of $17 per barrel in April due to the Oil prices deteriorated at the beginning of 2020 to in Lokichar. billions of shillings it has spent in exploring for oil exporter is slipping away after Tullow writing off This means that Kenya’s dream of being an oil in theindustry. money put investors to for difficult it making 2020 that the write off is a result of tanked oil prices in the first quarter of In its annual report for the year 2020, the British oil company said Chief ExecutiveOfficer Tullow OilPLC Rahul Dhir lo Ol a witn f $3 mlin Kh68 ilo) in billion) (KSh46.8 million $430 off written exploration costs,attributingittolowglobaloilprices. has Oil ullow 32 Tullow OilWrite-offKenya’s Exploration Costs said theCEO. leverages our deep geoscience and engineering expertise” value in these assets requires an innovative approach that make it viable at low oil prices. Our approach to unlocking to the end of 2021, we are reassessing the development to “Following the Government of Kenya’s extension of our licences unlock value. and other emerging basins present further opportunities to Kenya in position company’s the that said Dhir Rahul Officer, Despite the economic challenges, Tullow’s Chief Executive $247 million(Sh26.9billion). This has seen the firm’s remaining recoverable amount drop to $419 million(Sh45.7 billion)in2019. write-off on its exploration costs in Kenya, having written off It is the second year in a row that Tullow has made a major Tullow initsreport. fair value of the consideration as part of the disposal,” stated the to down written was Uganda and barrel per (Sh6,540) $60 billion), to barrel per (Sh7,085) $65 from assumption price (Sh106 oil nominal million $987 due to areduction in the group’s long-term accounting were 2020 driven by a write-downpredominantly of the value of Kenya 31, December “The total exploration cost write-offs for the year ended cent oftheexplorationcostswrite-off. last (Sh49 billion) year, with the two East African countries accounting for 90per million $451 off wrote firm the Uganda, In T the west ofthe country near the border with the Democratic Uganda discovered crude reserves in the Albertine rift basin in ministry ofenergy. crude oil,” said Robert Kasande, permanent secretary at Uganda’s construction of infrastructure that will produce and transport the The signatories have now agreed “to start investment in the and theTilengafield,operatedby Total S.A. field, Kingfisher the which is operated by China National Offshore Oil Corporation Ltd, fields: oil two at place take will Extraction East Africa,” saidSam Kuteesa, Uganda’s foreignminister. of spirit the in Tanzania and Uganda of people all of benefit the parties with commitment for realization of the Equal project; for “The EACOP Tripartite Project Agreement has been signed by all agreement. a tariff and transportation agreement and a shareholding that included: a host government agreement for the pipeline, The two presidents witnessed the signing of the three accords after oilfields Uganda’sBritain’s Tullow exited thecountrylastyear. own CNOOC China’s and Total France’s heatedcrudeoilpipelineintheworld. the longestelectrically atUgandan capital Kampala to sealthe $3.55 billion pipeline, that could be CNOOC and Total firms oil met Uganda of Museveni President Samia Hassan Suluhu of Tanzania and President Yoweri Tanga. pipeline from Uganda’s Albertine region to Tanzanian seaport of paving way forthe construction of 1,440KM of crude oil signed the East African Crude Oil Pipeline project agreement he PeopleRepublic of Tanzania and the Republic Uganda Tanzania –UgandaSignEACOPDeal due to C02 emissions from the burning of oil through the pipeline. environments, water sources and wetlands in both the countries Environmental activists say the project poses risks to protected heated tobekept liquidenoughtoflow. Uganda’s viscous, which means crude it is needs highly to be countries intheregion. Mozambique to consumers in Uganda, Rwanda, Congo and other corridor to put up another pipeline toship gas from Tanzania and said Museveni, adding investors could use the EACOP land “This pipeline project can be acore of bigger deployments,” created duringexecution,accordingtotheTanzanian President. Once completed, more than 10,000 job opportunities will be markets. nation needs a pipeline to transport the crude to international total reserves at 6 billion barrels, but the landlocked east African Republic of Congo in 2006. Government geologists estimated Uganda andTanzania inthespirit realization oftheEqualproject; all parties withcommitmentfor all parties Agreement hasbeensignedby for thebenefitofallpeople The EACOPTripartite Project of EastAfrica REGIONAL NEWS 33

1st Quarter, January - March 2021 1st Quarter, January - March 2021 T REGIONAL NEWS Minister, PuotKang Chol, said that the report, the South Sudanese Petroleum Speaking during the launch of a petroleum plans totake fullcontrolofitsoilsector. South SudantoTake OverItsOilSector Minister ofPetroleumSouthSudan Hon. PuotKang Chol facility for capacity building as it makes Oil and Gas training and controlling data he South Sudan government is building an 34 it ourselves” added Chol. data from Sudan so that we manage Sudan. The aim is forustomoveour a data center in the Republic of South are now at the last stage of building With support from our partners, we “Our data is managed from Khartoum. from KhartoumtoJuba. the move of South Sudanese oil data for the government as it prepares for is almost complete, a key milestone construction of an oil data center The Petroleum Minister added that said Chol. when the time is ripe for us to doso,” them to take over from our partners Republic of South Sudan, preparing young men and young women of the South Sudan where we will be training training center for the republic of a training facility -- a petroleum “We are working on establishing 2027. to phase outforeign investment by for a smooth transition as it plans its citizenry with necessary skills government is keen on equipping By 2027 190,000. per day, belowthe projected total of Production is 170,000 - 172,000 barrels logistics andsupplies. and the coronavirus has disrupted taking a tollon the country’s economy a hard time in 2020, with lower oil prices South Sudan depends on oil and has had with ourlaws.” when we are trying to comply especially to help us in managing the oil sector and “What we have published today is going have” saidChuang. we that regime fiscal and production, of “The launch is about oil production, cost report isvitalforsharinginformation. Petroleum Awow Daniel Chuang noted the Undersecretary of the Ministry of 2020. May to 2016 June from regime fiscal and Sudan’s oil production, cost of production, Petroleum Report that covers South The Ministry of Petroleum launched The R districts. supplies from Musanze and Karongi businesses, the district relies on power Despite its strategic importance to 10 megawatts. the district consumes between seven and from the methane gas plant. Currently, benefit to first the be will District Rubavu Branch ManagerofREGinRubavuDistrict. in Rubavu District,” said Laurent Butera, the challenges of electricity shortage and the first phase is expected generation to address power increase significantly “This is one of the projects that will DR Congomarket. area for Rwandan businesses eyeing the shortage in Rubavu district a strategic power increase generation and address electricity significantly will 2022 December by finalised be to set is 2019, The project which started in October in methanegasextraction. after the initial investment of $400 million add 56 megawatts to the national grid to seeks plant the says (SPLK), Kivu Lake The project’s contractor, Shema Power gas extractionfromLake Kivu. year in its first phase of methane phase first its in year megawatts of electricity by June this wanda is set to produce 15 phases. We extract gas from 300 to which will determine the subsequent “We are constructing the pilot phase, project the fast-track implementation. to Energy (REG) Rwanda Group with working is (SPLK), The constructor, Shema Power Lake Kivu power generation and the first phaseisexpectedto benefit fromthemethane Branch ManagerofREGin District willbethefirstto Rubavu District. address thechallenges between sevenand10 ,” saidLaurentButera, of electricity shortage of electricityshortage the districtconsumes significantly increase significantly in RubavuDistrictthe gas plant.Currently, “This isoneofthe projects thatwill megawatts. Lake Kivu byJune Another 15MWfrom Rwanda toProduce connectivity by the year2024. generation in order to reach 100 per cent extraction are expected to increase power However, projects like methane gas 2020. connected to electricity as of September households in Rwandan households were According to REG, 60percent of the problems willsoonbesolved. substation in Rubavu District, these Butera power said that with a newly-built Odette Nyiramongi,alocalhotelier, said. once we have enough electricity,”solved are hopeful that those problems will be damage to equipment like fridges. We “Sometimes power outages cause associated withstablesupply. residents say there are still challenges Rubavu are connected to electricity, but At least 74 per cent of households in the nationalgrid. power station, where it is connected to the gas plant will be transferred to a REG Sibomana added that power produced by is usedtogivepower.” then different gases from methane, which “First, we separate gases from water, Sibomana, anengineeratSPLK. 450 metres underwater,” said Laurent REGIONAL NEWS 35

1st Quarter, January - March 2021 1st Quarter, January - March 2021 T REGIONAL NEWS parliament’s Committee on National Economy, and the Budget committee and explained in the quarter,Early Junior Minister forFinance David Bahati held discussions with 2020. shareholder agreement, tariff agreement and transportation agreement all signed in the include scrutinised Inter-Governmental Agreement, signed in 2017, being the Host Government Agreement, the agreements (EACOP) Pipeline Oil Crude African East The not make therequestduringbudgetplanningcycle. Bbumba noted that parliament’s concerns is the ambush by the government since it did make aninformeddecisionofwhethertograntauthorisationborrowdomestically. the loan request by government and the different agreements tabled before them, to Syda Bbumba, National Economy committee chair, says the committee is still scrutinising decision, (FID)totieupitsequityinthe$3.5billionpipelineproject. investment final the for time in money the gets government the whether on say last the After failing twice, Uganda’s Parliament’s Committee on National Economy will now have project’s designandenvironmental impactstudies. oil companies have been footing since 2017 on behalf of the government, such as the The government will also use the loan to pay for “historical costs,” which international is apreconditionforthegovernmenttosolidifyitsownershipinproject. The 15 percent share is owned through the Uganda National Oil Company and the money the EastAfricanCrudeOilPipeline. he Ugandan government aims to borrow $130 million to fund its 15 percent share of Uganda SeekstoBorrow$130mfor 36 Crude PipelineDeal Tanga inTanzania. to Uganda western in projects Kingfisher Albert oil production sites at Tilenga and will transport crude oil from the Lake commercialisation of Uganda’s oil, which pipeline, a key component of the The Eacop is a 1,445km long heated and theFID. parties sign the shareholder agreement reimburse Totalurgently when the two stressed that the corporation needs to Legal and Corporate Affairs Peter Muliisa, Uganda National Oil Corporation Chief of Minister forFinanceexplained. enabling construction to start,” the Junior the Bill willpave the way forFIDandthus Conclusion of these negotiations and it’s presented to parliament. eventually government and the oil companies before and is under discussion between stages. The EACOP Bill has been drafted Decision for EACOP are in advanced “Negotiations for the Final Investment Uganda’s economy. structure of EACOP and its impact on the urgency ofthe loan, the shareholding * the ExciseDutyActeffectiveon1 October2020. The newrateshavebeenadjusted fortheaverageinflationrate2019/2020financialyear of4.94%inaccordancewithSection10 dated 1stOctober2020published newexcisedutyratesoncertain excisablegoodswithspecificrates. Aviation Spirit Premium (Gasoline) Motor Spirit (Gasoline) Regular Motor Spirit Fuel Spirit Type Jet Spirit Point &White Special Boiling and Preparations Other Light Oils crudes) (including topped refined Partly Fuel Kerosene type Jet Kerosene (IK) Illuminating and preparations Other Medium oils engines). and stationery low speedmarine heavy, blackfor Diesel Oil(ind speed engines). amber for high (automotive, light, Gas Oil Other Gas Oils 125 cst. Residual Fueloils 180 cst. Residual Fueloils 280 cst. Residual Fueloils fuels Other residual mixures Bituminous sands oil shaleandtar Bituminous or Bitumen Petroleum (Petroleum gases) Butanes Batching oils greases Lubricating Lubricating oils The CommissionerGeneral(“CG”) oftheKenya RevenueAuthority(“KRA”) videLegislativeSupplementNo.107LegalNoticeNo194of2020 Import Import Duty 10% 10% 10% 25% 25% 25% ------of Excise Duty Former Rate Kshs/Litre 20.9196 20.9196 20.5095 20.9196 10.8357 10.8357 8.9378 8.9378 1.5247 6.0514 5.5730 3.8906 6.6245 0.3155 0.6309 0.6309 0.6309 of Excise Duty Current Rate Petroleum Taxes Kshs/Litre 21.9530 21.9530 21.5227 21.9530 11.3710 11.3710 9.3793 9.3793 1.6000 6.3503 5.8483 4.0827 6.9517 0.3310 0.6621 0.6621 0.6621 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% VAT 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% - Mainten. 18.00 18.00 18.00 Road Levy ------Devel. Levy Petroleum Kshs/Litre 5.40 5.40 0.40 0.40 0.40 0.40 0.40 5.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 ------Current Rate Decl. Fee of Import of Import 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Development Railway 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Levy Kshs/Litre Remission 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.45 0.45 0.45 0.45 0.45 0.45 37 Adulteration SOURCE: KRA Kshs/Litre 18.00 STATISTICS Levy ------

1st Quarter, January - March 2021 1st Quarter, January - March 2021 STATISTICS 38 100.00 120.00 20.00 40.00 60.00 80.00 -

Aug-16 Year 2018-2020 Aug-20 Aug-19 May-20 May-19 Dec-20 Dec-19 Sep-20 Dec-18 Sep-19 Feb-21 Feb-20 Feb-19 Nov-20 Jun-20 Nov-19 Jun-19 Nov-18 Jan-21 Jan-20 Jan-19 Mar-21 Mar-20 Mar-19 Oct-20 Oct-19 Apr-20 Apr-19 Jul-20 Nov-16 Jul-19 Crude OilPriceTrend

Feb-17 TREND OIL CRUDE and USD/KSHS Mean Exchange Rates (KES/US$) Rates Exchange Mean May-17 Aug-17

Nov-17 Mean ExchangeRates(KES/US$) Feb-18 Crude OilAnalysis May-18 101.89 103.31 101.20 101.12 100.17 101.30 102.16 103.44 100.47 102.44 109.63 109.67 109.89 110.52 110.36 109.14 106.65 106.83 104.05 101.27 100.97 101.32 103.55 103.79 106.48 107.93 107.46 108.6 102.2 Aug-18 Nov-18 Feb-19 May-19

Crude Prices Crude Aug-19 Nov-19 Crude Prices 65.16 61.61 55.27 49.57 43.04 40.16 42.35 36.34 44.28 23.52 35.58 69.25 64.80 66.15 62.30 72.35 73.05 66.35 68.60 60.95 59.50 68.00 45.74 17.64 Feb-20 62.44 56.1 66.6 63.6 67.8 May-20 Aug-20 Nov-20 Feb-21 PRODUCT Super Petrol Automotive Diesel PRODUCT Kerosene Super Petrol Automotive Diesel Kerosene PRODUCT Super Petrol Automotive Diesel Kerosene PRODUCT Super Petrol Automotive Diesel Kerosene PRODUCT Super Petrol Automotive Diesel PRODUCT Kerosene Super Petrol Automotive Diesel Kerosene PRODUCT Super Petrol Automotive Diesel Kerosene PRODUCT Super Petrol Automotive Diesel PRODUCT Kerosene Super Petrol Automotive Diesel Kerosene PRODUCT Super Petrol Automotive Diesel Kerosene MOMBASA 120.41 105.27 MOMBASA 95.46 120.41 105.27 95.46 MOMBASA 112.78 99.52 90.05 MOMBASA 104.60 94.01 84.75 MOMBASA 104.43 89.43 MOMBASA 81.17 103.45 88.31 79.25 MOMBASA 104.86 90.53 81.37 MOMBASA 104.18 92.73 MOMBASA 81.37 101.57 92.26 81.29 MOMBASA 98.11 89.50 63.09 Maximum pumpprices(15thNovember2020to14thDecember2020) Maximum pumpprices(15thSeptember2020to14thOctober2020) Maximum pumpprices(15thDecember2020to14thJanuary 2021) Maximum pumpprices(15thAugust2020to14thSeptember2020) Maximum pumpprices(15thOctober2020to14thNovember2020) Maximum pump prices (15th January 2021 to 14th February 2021) Maximum pumpprices(15thJanuary2021to14thFebruary Maximum pumpprices(15thFebruary 2021to14thMarch2021) Maximum pump prices (15th July 2020to14thAugust2020) Maximum pumpprices(15thJuly Maximum pumpprices(15thMarch2020to14thApril2020) Maximum pumpprices(15thApril2020to14thMay2020) Pump Prices NAIROBI 122.81 107.66 NAIROBI 97.85 122.81 107.66 97.85 NAIROBI 115.18 101.91 92.44 NAIROBI 106.99 96.40 87.12 NAIROBI 106.82 91.82 NAIROBI 83.56 105.85 90.70 81.63 NAIROBI 107.27 92.91 83.73 NAIROBI 106.55 95.09 NAIROBI 83.73 103.95 94.63 83.65 NAIROBI 100.48 91.87 65.45 NAKURU 122.44 107.55 NAKURU 97.76 122.44 107.55 97.76 NAKURU 114.85 101.81 92.36 NAKURU 106.69 96.31 87.08 NAKURU 106.53 91.76 NAKURU 83.52 105.56 90.63 81.59 NAKURU 106.96 92.85 83.69 NAKURU 106.26 95.02 NAKURU 83.69 103.70 94.57 83.62 NAKURU 100.26 91.83 65.47 ELDORET 123.36 108.46 ELDORET 98.68 123.36 108.46 98.68 ELDORET 115.77 102.74 93.29 ELDORET 107.62 97.23 88.00 ELDORET 107.45 92.67 ELDORET 84.43 106.48 91.56 82.51 ELDORET 107.89 93.77 84.61 ELDORET 107.18 95.94 ELDORET 84.61 104.62 95.49 84.54 ELDORET 101.18 92.75 66.40 KISUMU 123.36 108.46 KISUMU 98.68 123.36 108.46 98.68 KISUMU 115.76 102.73 93.28 KISUMU 107.61 97.23 87.99 KISUMU 107.45 92.66 KISUMU 84.43 106.48 91.55 82.51 KISUMU 107.88 93.77 84.60 KISUMU 107.18 95.94 KISUMU 84.60 104.62 95.49 84.54 KISUMU 101.17 92.74 66.39 39 STATISTICS

1st Quarter, January - March 2021 1st Quarter, January - March 2021 STATISTICS excluding IDFfeesandRailway Development Levy. Therefore, thebasisofcharging VAT atthepointofentryincludesCIFvalue, theapplicablecustom of VAT nowincludesexciseduty, feesandothercharges inlinewiththeEastAfricanCommunityCustomsManagement Act(EACCMA). calculating VAT onpetroleumproducts,whichbecame effectiveon15thMay2020.WhiletheVAT was retainedat8%,thecalculation was assentedtoon25thApril2020.Allthechangesin Actbecameeffectiveonthatdate,exceptthechangein basisof NOTE: Retail PricesinNairobi Taxes andLevies (d) OMC Margins(c) Distribution andStorageCosts(b) Products Costs(a) Summary Retail PricesinNairobi(a)+(b)(c)(d) Storage anddistribution(b) within40kmsofNairobi Delivery Depot Losses Pipeline Losses Road Transport (Msa-Nrb)-Bridging Pipeline Transport (Msa-Nrb) Landed Cost(a) Cost Item Taxes andLevies(d) Value AddedTax (VAT) DeclarationFee Import Merchant ShippingLevy Anti-adulteration Levy Railway Regulatory Levy Petroleum Regulatory Levy Petroleum DevelopmentLevy Road MaintenanceLevy Excise Duty Oil Marketing CompaniesMargins(C) Dealers Margin Margin Importers Thecomputationofpumpprices hastaken intoaccountthechanges effectedbytheTax Laws(Amendment)Act,2020which 40 Breakdown ofthecostsSuperPetrol(PMS),Diesel(AGO)andKerosene (DPK)inNairobi: EPRA PetroleumPrices Delivery topetrolstations Delivery 0.5% PMS,0.3%ForDPK&AGO) (0.25%) Pipeline (0% PMS,AGO&IK) Road (100% PMS,AGO&IK) Pipeline Weighted averagecostforallimports Cost Description Tax Levy Levy Levy Levy Levy Levy Levy Tax Retail OperatingMargin Retail Investment Margin Wholesale 15th April2021to14thMay

57.58 7.95 3.29 53.99 KShs/Litre Super Petrol 122.81 57.58 0.54 0.51 0.08 0.00 2.16 53.99 Kshs/Litre Super Petrol 7.95 3.29 122.81 9.10 1.81 0.03 0.00 1.04 0.25 5.40 18.00 21.95 s dutyandexcisetaxbut 45.60 10.08 3.03 48.95 KShs/Litre Diesel 107.66 45.60 0.54 0.26 0.07 0.00 2.16 48.95 Kshs/Litre Diesel 10.08 3.03 107.66 7.97 1.64 0.03 0.00 0.94 0.25 5.40 18.00 11.37 39.73 8.89 3.00 46.23 KShs/Litre Kerosene 97.85 39.73 0.54 0.24 0.06 0.00 2.16 46.23 Kshs/Litre Kerosene 7.25 1.55 0.03 18.00 0.88 0.25 0.40 0.00 11.37 8.89 3.00 97.85 SOURCE: EPRA 41

1st Quarter, January - March 2021 #DeltaKeepsYouMoving