Vivo Energy, the retailer of the Shell brand, has emerged the top oil marketer in Kenya for the year ended 31 December 2017, beating Total Kenya and KenolKobil.
The Petroleum Institute of East Africa’s (PIEA) data indicates that Vivo Energy’s share of local petroleum sales increased to 17.6 percent during the aforementioned period from 15.9 percent in the previous year when it came second after Total Kenya.
Total’s share decreased by 0.1 percent to 15.9 percent, ranking it third after KenolKobil. KenolKobil maintained its position as the second largest oil marketer after gaining 1.1 percent in its share of petroleum sales to 16.5 percent.
Vivo’s rise to the top is attributed to the new service stations it has opened. In the past few years, the company has opened fuel stations across the country in places such as Thika, Kisii, Meru, and Nairobi. Vivo plans to continue the expansion across Africa.
“Vivo Energy plans to expand and develop its retail network in existing markets by building new service stations, acquiring new sites and upgrading existing retail service stations to fulfill unrealized potential,” Vivo Energy told the London Stock Exchange (LSE) and the Johannesburg Stock Exchange (JSE) where it plans to list in May.
The company said it opened a new service station every three days between 2015 and 2017 across its 10 markets in Africa. By increasing its service stations, Vivo has gained increased sales in petroleum, diesel, and petroleum to motorists and households.
The market share drivers in this industry include bulk sales to independent oil firms, airlines, emergency power producers, and motor vehicle fuels. Thanks to the price control regulations that the government has put in place, oil marketers simply have to increase their market footprint and identify strategic locations in order to increase sales.