Press Center | Freight Shipping Logistics News
Known as the Open Tender System, the rules have come under sharp focus after a Kenyan registered company, Kencor Petroleum Limited, failed to ship in jet fuel throwing the country on the verge of an aviation crisis.
The proposed review will see a mandatory execution of a performance bond for any tender bidder to provide security for the importers and act as a deterrence against negligence.
This comes even as emergency measures were put in place to guard against shortages expected to bite from next Tuesday.
Currently, bidders are just required in the bid documents to name their financiers. Importers are currently charged $2 (Sh170) a tonne a day if they default.
Oil firm, however, say this is negligible and want the penalty increased to at least $10 (about Sh850). A tonne has 1,180 litres.
Kencor was expected to deliver some 52,239 tonnes of jet fuel known as Jet A1 between June 12 and 14 but failed to do so saying “it encountered problems at the port of loading”.
The oil firm has no known retail network in Kenya but is permitted by the Energy Regulatory Commission to deal in imports, exports and wholesale business.
It has been in business for the past three years. “They delivered nine cargoes last year, one cargo in 2012 and three so far in 2014”, said an industry executive who requested anonymity.
Three years ago, state-owned National Oil Corporation of Kenya botched imports of diesel into the country after which consumers were forced to shoulder a $10 million (Sh88 million) following procurement of emergency and costlier supplies in mitigation.
KenolKobil, Kenya’s second biggest oil firm and Gapco will each ship in a parcel to fill in the anticipated deficit. The pair, along with Galana Oil and Gulf Energy are regular winners for OTS tenders held monthly.
On Monday, the Mombasa- Nairobi line was shut to other products to await pumping of expected fresh supplies next Tuesday to Nairobi where the shortage was set to start biting.
PARASTATAL heads who signed the Mombasa port community charter risk being sacked if their agencies do not deliver on the contents of the new entity. The charter signed between the government and the private sector aims at improving the movement of cargo from the port into hinterland