Vivo Energy Kenya, a retailer of Shell-branded fuel products accounted for nearly a quarter of the petrol, diesel and kerosene sold in the year ended June 2022, reflecting the impact of its vast footprint across the country.
The latest industry data from the Energy and Petroleum Regulatory Authority (Epra) shows that Vivo Energy sold 1.367 billion litres or 23.83 percent of the fuel imported into Kenya in the period under review.
The high volumes reflect Vivo’s vast footprint countrywide which has seen the retailer dominate the fuel market ahead of its closest rivals, TotalEnergies Marketing Kenya Plc and Rubis Energy Kenya Plc.
TotalEnergies sold 992.46 million litres or 17 percent of the fuel while Rubis sold 574.93 million litres or 10.02 percent of the petroleum products.Vivo had announced plans to open 20 additional fuel stations countrywide by the end of last year in its latest expansion plans.
Small independent dealers that mainly supply the rural economy accounted for a combined share of 17 percent or 975.4 million litres of fuel sold in the year under review.
Vivo, TotalEnergies and Rubis accounted for a combined share of slightly more than half of the fuel sold in the country, according to the data.Vivo’s high sales pushed its revenues by Sh27 billion in the six months that ended June last year on the back of the high sales.
Its parent company –Vivo Energy Group Plc– disclosed that the Kenyan operations made Sh114 billion ($924 million) in revenues in the first half of last year, a 30.6 percent jump from Sh87 billion ($707 million) in a similar period the year before.
Jump in Revenues
The company’s jump in revenues came in a year when easing of the restrictions that had been imposed to curb the spread of the Coronavirus, fuelled demand for fuel across various economic sectors, notably transport and industries.
“Total net domestic sales of petroleum products increased 11 percent to 5.2 million tonnes which are attributed to the robust recovery of the economy in 2021 fueling demand for the products,” the energy regulator says in the 2021/22 financial year report.
The recovery in fuel demand has mainly benefitted the well-funded multinationals as the local dealers grapple with a cash crunch over a government-backed fuel stabilization scheme that was started in 2020.
The State has delayed compensation to oil marketers running to six monthly pricing cycles, throwing the local oil dealers into cash-flow woes.The delays have forced some of the local dealers to close shop as the multinationals move in to take over their markets by increasing their distribution of fuel stations.