Kenya to decide on future of oil refinery.

The future of Mombasa Oil refinery- East Africa's only oil refinery, could be decided next week when a report is due on whether to upgrade the aging Kenyan plant or turn it into a storage facility, the country's energy regulator has told Reuters.

Speaking to Reuters, Linus Gitonga, director of the Energy Regulatory Commission (ERC), said the refinery would be converted into 'something more useful', including a storage facility, if the proposal for its upgrade turns out to be uneconomical.

“Fuel distributors say the refinery is operating below its 35,000 barrels per day capacity and some have
threatened to boycott it.” Mr. Gitonga continues further that the ERC will not dismantle the facility under any circumstances whatsoever.

Oil is expected to play a significant role in Kenya’s economy, with huge oil deposits in Turkana expected to make Kenya a major oil producing country. Uganda has been in talks with Kenya to establish a single refinery to cut on costs, and help the two East African countries earn more from oil.

To avoid Nigeria’s case, which exports all its oil minerals, only to import it back to the country as finished oil, more will have to be done, especially if oil is to be viewed as a blessing to the economy rather than a curse as it has been in many African countries.

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