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Kenya Pipeline Company (KPC) is in the final stages of integrating its SAP IS – OIL system with Kenya Revenue Authority’s (KRA) Integrated Customs Management Systems (iCMS). The KPC-KRA integration will bring about a major shift in KPC’s processes and tax compliance at the various company’s depots.

SAP IS-OIL and iCMS integration will streamline and manage business processes from supply chain man-agement to logistics planning as well as centrally administer procurement, production and sales activities. This in turn enables the company to meet the business context as dictated by the oil industry in Kenya and the region. The benefits include enhanced control from start to end for any order, multi-level approval for OMC order requests, accountability, increased transparency resulting to increased customer satisfaction, efficiency in product transfer processes due to minimal human interventions, reduced paperwork, reduced risk of product being lifted without KRA approval and improved tax compliance.

The project is being executed by internal KPC resources with a multi-functional team constituted from Operations, Revenue Account and Supply & Logistics, Quality Control, Marketing & Business Development and ICT departments.

KPC’s Managing Director, Dr. Macharia Irungu noted that KPC and KRA operations at depots are interde-pendent, raising the need to integrate the two stock management systems. “In line with our Vision 2025, Systems Pillar, the company’s SAP ERP has been enhanced to support the KRA integration to KPC line,” he further added.

The oil marketing companies (OMCs) order request process that was being handled manually will now be done online in the SAP system through the OMC SAP portal. The following are the processes that the OMCs will be able to perform online, pump-overs, back loading, marine, adjustment of stock entitlement and hydrant sales.

The rollout will be carried out in two phases, the first one happened on 3rd May 2021 whose scope was online order creation and phase 2 will be on 30th May 2021 when KPC and KRA systems integrate elimi-nating manual KRA entry bookings and gate-passing.

KPC staff Fredrick Kipng’ok (r) & Eric Mwania (c) assisting
National Oil Corporation of Kenya (NOCK) staff
Nehemiah Bisarara navigate the new SAP portal