The move by the government to upgrade Kenya Petroleum Refinery Limited (KPRL) to merchant status will see the plant import its own crude oil, process it and sell refined products at a profit to the Kenyan market and for export starting July 1.

As part of preparations to have the plant serve as a merchant refinery, its managers plan to upgrade it to produce two-and–half times its current annual production. KPRL currently produces 1.6 million tonnes a year and it plans to increase production to four million tonnes.

This upgrade will also reduce the cost of refining oil and increase the amount of Liquefied Petroleum Gas (LPG) produced locally, leading to lower prices for consumers.

KPRL also plans import new blends of crude to boost profitability. Kenya currently imports Murban crude which is more expensive than other blends in the market.