Powering Africa's future: Efficiency, collaboration, sustainability

Africa is facing a complex energy challenge, with a growing focus on moving towards a more efficient and sustainable future through strategic partnerships. A key player in this effort is the Kenya Pipeline Company (KPC), which is prioritizing innovation and diversification for future growth. In a recent interview with CNBC Africa, Joe Sang, the Managing Director of KPC, provided insights into the company's strategies for enhancing efficiency, managing financial risks, and sustaining growth in the energy sector. One of the key areas where KPC has invested in technology is customer service management. Sang highlighted the implementation of systems like the customer portal and the queue management system, which have improved transparency and efficiency in operations. The customer portal allows customers to place orders seamlessly, reducing order processing time significantly. The queue management system enables suppliers and customers to track their trucks and facilitates fast-in, fast-out operations at KPC's installations, promoting efficiency and transparency. In addition to customer service management, KPC has embraced technology like the Internet of Things, integrating systems such as SCADA and leak detection to enhance operational efficiency. These technological advancements have not only improved operational processes but also reduced losses in the pipeline, contributing to a positive impact on the company's financial performance. Sang emphasized the importance of cost containment measures and continued efficiency in mitigating financial risks amidst global price fluctuations and currency volatility. Despite these challenges, KPC reported a solid financial performance, with a 21% profit growth and significant dividend payouts to the government of Kenya. Sang attributed this growth to strategic initiatives like market share expansion and regional collaborations. With a market share of 92% in Kenya, KPC is focused on serving customers diligently and efficiently, leveraging partnerships to drive export market contributions. The recent acquisition of Kenya Petroleum Refineries (KPRL) has further enhanced KPC's operational flexibility and storage capacity, providing opportunities for targeted investments and asset utilization. The merger and dissolution of KPRL into KPC are expected to optimize operational efficiency and drive long-term value for shareholders. Looking ahead, Sang highlighted KPC's diversification strategy as a key pillar for sustainable growth in the evolving energy landscape. From leveraging transition fuels like Liquefied Biogas (LBG) to exploring opportunities in fiber optic infrastructure and consultancy services, KPC is committed to embracing innovative solutions and maximizing revenue streams. By focusing on efficiency, collaboration, and sustainability, KPC aims to navigate the energy challenges in Africa and contribute to a more resilient and reliable energy future for the continent.