Kenya Pipeline Company (KPC) is venturing into the drinking water business. The move is the latest step in the company’s push to diversify its revenues. It intends to produce drinking water for internal use while selling the surplus on the open market.
The company confirmed plans to set up up a water treatment and bottling plant at its Morendat station in Naivasha. Supplies from the plant will be expected to meet KPC’s internal needs and to drive new revenue streams through sales to external consumers.
The plant will have a capacity to produce 4,000 bottles per hour. According to KPC, the plant will package water in 500-millilitre, 1-litre, and 18.9-litre bottles.
“KPC has sunk boreholes in various stations to cut down on water consumption costs. However, despite sufficient yields from these boreholes, the quality of water does not meet the minimum requirements for drinking water as specified in KEBS quality standard for drinking waterm” KPC disclosed.
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“KPC also desires to diversify its revenue streams as guided by Vision 2025. Bottled water market remains dynamic with high untapped potential,” the company stated .
Explaining the move, KPC said that annual expenditure on bottled water within its establishments had been rising significantly.
The diversification drive saw the State-owned firm venture into fibre optic cables last year, eyeing the multi-billion internet service provision market.
The fibre optic cable that will run from the port city of Mombasa to Nairobi, Kisumu and Eldoret. The corporation charges $22(Ksh3000.75) per kilometre as well as a $200 (Ksh 27,279.62) installation fee per site with a contract duration between 5,10,15, 20, and 25 years.
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