Response strategies adopted by kenya pipeline company limited to the challenges of oil distribution in Kenya

Abstract

Response strategies are the various measures that an organization employs in wake of threats in the environment it exists. Kenya Pipeline Company has faced a fair share if challenges in its quest to ensure efficient distribution of oil products in Kenya. This study set to achieve two research objectives including: determining the challenges faced by KPC in oil distribution in Kenya and establishing the response strategies adopted by KPC to cope with the challenges of oil distribution in Kenya. Strategic responses help an organization align itself with the changes in the operating environment so as to be able to achieve its set objectives. This study adopted a case study research design because only one organization was involved. The study used primary data collected using an interview guide. The interviews were administered to three senior managers of the Corporation following their experience and involvement in strategy development and execution at the Corporation. The interviews were administered through personal interviews. The data obtained from the interviews was mainly qualitative. Content analysis was used to analyze the findings. The study established that the strategies developed were tied to the overall corporate strategy to enable the Corporation attain its strategic goals. The challenges facing the Corporation were both internal and external. They included: Capacity constraints with the Sinedet line to Kisumu being smaller, long processes of clearing the products by other stakeholders at the deports leading to delays in oil marketers collecting their products; change in technology which made some equipment at the Corporation obsolete; long and bureaucratic government procurement procedures which caused delay in maintenance. KPC devised several strategies to counter the challenges emanating from the changes in its operating environment including: reviewing the petroleum supply chain infrastructure, systems and investment in the sector to guarantee reliable, efficient and cost effective supply chain; commissioning the construction of more storage facilities. The Corporation in conjunction with the Ministry of Energy developed guidelines which impose stiff penalties on oil marketers whose oil products overstay in the pipeline system and installation of flow meters to enhance product flow and distribution