Why local firms might lose out on crude oil pipelineDespite availability of opportunities for private firms to invest, no local company has expressed interest or made enquiries about the Sh100 billion project. The State plans to invest in the pipeline through the Kenya Pipeline Company, which is expected to have a stake of up to 20 per cent. Other than local institutions that have not expressed interest in investing in the pipeline, also missing out on the billions in profits that the crude oil pipeline company will present in transporting oil are communities in counties where the crude oil pipeline will traverse. The issue might, however, crop up when the pipeline starts taking shape and the reality of the billions that the crude oil pipeline firm will make over its life starts sinking in. Other factors including tax holidays that might be offered to the crude oil pipeline company might see the estimated $12.50 per barrel tariff come down.

Source: Standard Digital February 25, 2019 21:11 UTC