The Kenya Ports Authority will move the Kipevu Oil Terminal to Kilindini Channel where a bigger facility will be put up to accommodate larger vessels.
Acting managing director Catherine Mturi on Tuesday said the new oil terminal is located between Berth 19 and the just completed second container terminal.
"The current location is not favourable for large oil ships that will be docking at the port," she said.
“The relocation of the terminal will enable the country to enjoy lower freight due to economies of scale. We expect that pipeline will increase their tank sizes to enhance their storage capacity,” Mturi said.
She was addressing a press conference at the KPA headquarters.
“As we speak, geotechnical surveys are going on in preparation for the construction work,” Mturi said.
She said they will also rehabilitate several berths at the port.
Mturi said they are working with development partners, including Trade Mark East Africa, to rehabilitate the quay on the conventional cargo berths to enhance capacity.