Factors Influencing Supply of Petroleum Products in Kenya: a Case of Kenya Pipeline Company Eldoret Depot, Uasin Gishu County, Kenya

Abstract

Petroleum products are typically in high demand in most economies around the globe with countries such as South Sudan, Congo, Rwanda, and Uganda rely on Kenya for petroleum products. Management of petroleum products has diverse effects on the supply chain. The research sort to establish the influence of storage capacity on the supply of petroleum; determine the influence of pipeline infrastructure on the supply of petroleum; establish the influence of regulations on the supply of petroleum products by Kenya Pipeline Company and to determine the role of quality control in the supply of petroleum products by Kenya Pipeline Company. The study used descriptive statistics to analyze obtained data. The study had a target population of 98 respondents which resulted in a sample size of 91 respondents by use of Yamane (1967). Data was collected by use of questionnaires which were tested and found reliable. Collected data was analyzed by use of SPSS and results presented inform of tables, frequencies, and percentages. From the findings of the study, storage capacity was found to be an issue that affected the supply of different petroleum products resulting to low throughput and increased lead time, infrastructure at the depot was found to be inadequate in meeting the supply-demand of different petroleum products needed by consumers. Regulations adopted by KPC Eldoret depot meet the consumer requirements and set standards but due to lack of enforcement have led to low standards in petroleum products handling. The quality of petroleum products availed at the depot meets the set quality standards but due to ignorance, quality at times is compromised leading to adulterated petroleum products being availed to consumers. The study concluded that, with increased storage capacity, lead time will be reduced hence increasing throughput, with an improved pipeline infrastructure, efficiency and effectiveness will be addressed leading to increased throughput and turnaround time, regulations adopted by KPC Eldoret depot were found to be effective which enhanced management of petroleum products but more enforcement was important. The researcher recommends that storage and loading capacity to be increased, reduce beauracratic structures in truck clearance and improvement on quality control measures to ensure quality products are supplied to consumers thus ensuring proper supply of petroleum products