In Summary

  • The entry bucks a recent trend in which Western multinationals have been exiting Kenya’s (and Africa) petroleum retail market to focus on upstream operations.
  • The company recently opened two stations in western towns of Mumias and Busia, and is now racing towards setting up retail operations in Nairobi and other big towns.

A Netherlands-based company has launched operations in Kenya, making Nairobi its second African destination.

Lexo Energy, the latest oil marketer to join the Kenyan market, is backed by a multi-billion-shillings war chest with which it plans to open up to 25 new petrol stations this year.

The entry bucks a recent trend in which Western multinationals have been exiting Kenya’s (and Africa) petroleum retail market to focus on upstream operations.

Besides Kenya, Lexo Energy has operations in Mauritius in Africa.

“We plan to have between 15 and 25 petrol stations before the end of the year,” Lexo Energy Nairobi office manager Koki Mulwa said on phone.

The company recently opened two stations in western towns of Mumias and Busia, and is now racing towards setting up retail operations in Nairobi and other big towns.

Lexo Energy, however, did not disclose its expansion budget, but estimates from the energy sector regulator put the cost of a stocked petrol station at about Sh100 million.

Page 1 of 2