This report focuses on Kenya’s petroleum industry, which encompasses upstream oil and natural gas exploration and development activities, midstream bulk storage and transportation of fuel and petroleum products, and downstream activities, including manufacturing and the wholesale and retail trade in refined fuels and petroleum products. It includes information on the size and state of the sector, consumption and production statistics and developments in the upstream and downstream markets. There are profiles of 26 companies including Rubis Energy Kenya, the largest player in the Kenyan downstream petroleum market and other major players such as Total Kenya, Vivo Energy, OLA Energy and the National Oil Corporation of Kenya.
The Petroleum Industry in Kenya
Following Tullow Oil’s discovery in 2012 of crude oil reserves in northern Kenya’s Lokichar sub-basin, estimated at over 4 billion barrels, Kenya has been touted as Africa’s next major oil producer. Results from an early oil pilot project indicate that the reserves in Turkana’s Amosing and Ngamia fields are commercially viable. But the coronavirus pandemic and other setbacks have delayed the development of the oilfields for commercial production. The Kenyan government hopes to secure investment to construct crude oil processing and storage facilities and an oil pipeline.
There are over 1,800 service stations in Kenya operated by more than 70 registered oil marketing companies that are involved in the supply, distribution and sales of petroleum products such as petrol, diesel, kerosene, lubricants and LPG. Kenya’s petroleum industry is competitive with many consumers and producers. The absence of major price wars due to government price controls means market presence, strategic locations, differentiation and diversification are key factors in attracting customers.