The Kenyan oil industry is tightly controlled by a closely-knit and very little known syndicate of powerful wealthy men and women. Today we look at who owns the Kenyan oil sector, and who the big boys behind the scenes are.
About a week ago, there was a sudden rise in oil prices. However, the government put Kenyans at ease with the good news that it wouldn’t increase the oil prices despite the increase in the global market. But the government had another piece of information that was upsetting to most.
The government announced that it would cut the oil marketers’ margin, which has been regulated by the State since 2010, with the promise of compensations estimated at Sh1.
The marketers’ margin for super petrol has been cut from Sh12.39 a litre to Sh7.95 over the month to May 14, representing a cut of Sh4.44.
Diesel margin has been cut by Sh2.28 to Sh10.08 a litre while that of Kerosene has been lowered to Sh8.89 from Sh12.36.
The decision will see marketers get an estimated Sh1.11 billion compensation from taxes, Sh480 million on diesel and Sh108 million on kerosene.
Rubis is the country’s biggest oil dealer, with a grasp of 20% of the country’s market. It is owned by Rubis Energie SAS (Rubis). This is a subsidiary of Rubis SCA, an international firm that deals in the storage, distribution and sale of petroleum, liquefied petroleum gas, food and chemical products. It acquired KenolKobil, and more recently, gulf energy holdings.
Vivo Energy Kenya is owned by Vivo Energy Ltd. The parent company was established a decade ago as a partnership between Vitol Group , a Swiss-based Dutch-owned multinational energy and commodity trading company, and Helios Investment Partners , a United Kingdom -based private equity firm, with the objective to purchase majority shares in the downstream fuels business of Royal Dutch Shell in Africa for approximately $1 billion..
Total Kenya PLC is part of the global Total Group, which is the fourth largest publicly traded integrated international oil and gas company in the world with presence in over 100 countries. It is owned by France based Total Outre-Mer, which operates as an oil and gas exploration company. The Company produces and markets oil and gas products.