- President Mwai Kibaki has urged Kenyan companies to take advantaged of huge government tenders, saying government has secured enough resources to fund major projects aimed at accelerating economic growth.
Launching the multi-million Kenya petroleum oil pipeline enhancement project, President Kibaki said the project would double capacity of oil pipeline connecting Mombasa and capital Nairobi, with increased supply to landlocked neighbours like Burundi and Uganda.
Mr Kibaki said with the involvement of locals in massive projects, resources would be retained thus stimulating economic growth and development at home.
He said the move should also lead to a major reduction in the number of oil trucks ferrying petroleum products from Mombasa to Nairobi, thereby saving the country's road network from serious damage.
"The government will address all the issues raised by their Member of Parliament, Prof Phillip Kaloki, among them establishment of irrigation schemes to feed the local population and issuance of title deeds to over 100,000 squatters from the area," he assured the residents of Kibwezi.
President Kibaki however expressed his disappointment with the current high petroleum prices in the country, despite the sharp drop of crude oil prices in global markets.
Local television station quoted President Kibaki saying: "In this connection, I am also happy to note that the Energy Regulatory Commission has invited stakeholders to discuss the proposal for limited regulation of oil prices in Kenya."
Mr Kibaki said tenders for the construction of a 14-inch parallel pipeline to extend the link to the western town of Eldoret had also been floated and tenders evaluated.
The pipeline capacity enhancement project is designed to double the flow-rate of petroleum products between Mombasa and Nairobi from the present 440,000 litres per hour to 880,000 litres per hour.
Meanwhile the government will introduce price controls in oil industry from January, Energy minister Kiraitu Murungi said.
He said the pricing formulae will be implemented after the expiry of a 40-day notice to stakeholders for proposals. "We cannot let oil dealers to impoverish Kenyans as they grow rich," Mr Murungi said.
Kenya is one of the African countries that have been marred with protests on high food and fuel costs, earlier this year as fuel and commodities orices soared to levels that became unbearable to local populations.
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