KenolKobil to set up lubricants blending plant in Mombasa
KenolKobil Ltd Group Managing Director David Ohana (right), Chairman James Mathenge and BP Head of Marketing Shren Moodley address the media during the signing of an agreement with Castrol Lubricants that will see the oil dealer hold exclusive rights to distribute lubricants in Kenya. The event was held on May 19, 2015 at the Intercontinental Hotel in Nairobi. PHOTO | SALATON NJAU | NATION MEDIA GROUP
What you need to know:
- According to KenolKobil Group Managing Director David Ohana, the firm is seeking to capitalise on the lucrative lubricants market and exploit growing demand for the product in the domestic and export markets to grow its revenues and market share.
Oil marketer, KenolKobil plans to construct a lubricants blending plant in Mombasa jointly with BP South Africa to cash in on the lucrative business.
The oil dealer yesterday said it would do so in the coming year and its products would then be supplied across KenolKobil’s outlets in East Africa. The firm also signed an exclusive lubricants supply deal with BP South Africa.
The plant is to be constructed at an estimated cost of between Sh960 million ($10 million) and Sh1.4 billion ($15 million).
According to KenolKobil Group Managing Director David Ohana, the firm is seeking to capitalise on the lucrative lubricants market and exploit growing demand for the product in the domestic and export markets to grow its revenues and market share.
He said setting up a local blending plant would also provide the much-needed tax relief. “When you import, you pay 25 per cent but when you blend locally, you pay 5 per cent tax,” Mr Ohana said yesterday.
“We needed to partner with an international player in the lubricants market to exploit the potential in this market. It will open for us the export market but today we are a bit constrained,” he said.
“Our chances of success are high in the partnership with KenolKobil. We are on the verge of re-entering the Kenyan market with this partnership,” said BP Africa markets sales director Stanley Dewing.
