KenolKobil upgrades fuel card in race for customers

KenolKobil Group Managing Director David Ohana (left) and Diamond Trust Bank Chief Executive Officer Nasim Devji during the signing of an agreement that will see the bank provide KenolKobil with real time fuel card management system services for its customers on June 15, 2015 at the DTB head office in Nairobi. SALATON NJAU |

What you need to know:

  • KenolKobil said 30 per cent of its sales are made through the card system. The oil firm intends to sell 50,000 cards by the first quarter of 2016, which is estimated to increase its revenue by 5 to 8 per cent by close of the year.
  • The move comes at a time when the Energy Regulatory Commission has reviewed oil prices upwards signalling a cycle of high fuel prices.

KenolKobil has upgraded its card payment system by enabling online transactions in a move to grow and maintain its customers as cashless payment grows.

This means that customers can move money from their bank accounts to their cards for payment of fuel, follow their transactions in real time and transfer money.

The deal involved an upgrade of the previous offline K-Card system through a Sh48.6 million purchase of part of the DTB’s infrastructure that hosted the card system.

KenolKobil Managing director Davis Ohana said customers will purchase fuel at a Sh2 per litre discount using the automated card regardless of the shift in fuel prices.

The move comes at a time when the Energy Regulatory Commission has reviewed oil prices upwards, signalling a cycle of high fuel prices.

30 PER CENT OF SALES

KenolKobil said 30 per cent of its sales are made through the card system. The oil firm intends to sell 50,000 cards by the first quarter of 2016, which is estimated to increase its revenue by 5 to 8 per cent by close of the year.

The upgraded system allows printing of transactions and topping up from banks, agents and mobile money and sends an SMS alert if a card is stolen.

DTB Group Bank CEO and managing director Nasim Devji said the new card puts the firm at the forefront of innovation and reduces fraud as it increases the transaction time, making the customer own his fuel consumption.

About 30,000 customers are already using the old card system. The firm expects the card usage to double, banking on its flexibility and the discounts offered on the card regardless of fuel price increases.