Supply Chain Risks and Uncertainties in the Kenya Petroleum Industry

Purpose- The purpose of this research is to identify the supply chain risks and uncertainties plaguing the Kenya petroleum industry and provide recommendations on mitigation strategies that can be applied to reduce their impact. Methodology- The research is of qualitative nature and the primary method of collecting data is through semi-structured interviews. Four experts from oil companies namely: Kenya Pipeline Ltd, Sifa Energy Ltd, Galana Petroleum Ltd and Riva Petroleum Ltd are interviewed. Secondary data from past literature on the topic is used to provide a basis of reference on the report. Findings- The research found that uncertainties are categorized as internal and external sources which consist of supply uncertainty, demand uncertainty, technology uncertainty and general environmental factors. Risks are placed under three categories: environmental, organisational and product related risk. Mitigation strategies were found to concentrate on how to deal impact more than how to avoid risks and uncertainties. Recommendations- Based on the research carried out, the recommendations made include: broader divestiture of generating facilities, close cooperation with the government so as to have mutual understanding, IT systems to strengthen monitoring and more firms in the country to transport and store the product