Kenya’s third largest oil marketer KenolKobil has exited Tanzania and the Democratic Republic of Congo markets.
On Wednesday, the oil dealer announced that it had pulled out of the two markets leaving it with the Kenyan subsidiary.
A brief statement sent to Capital Markets Authority and Copied to the Nairobi Securities Exchange and the Central Depository and Settlement Corporation stated the firm’s business move.
“We wish to inform the Capital Markets Authority (CMA) that KenolKobil Limited has relinquished all its shareholding interests in Kobil Tanzania Limited and KenolKobil Congo SPRL. Owing to the above said, the two companies shall no longer be subsidiaries of KenolKobil Limited,” read the statement signed by group managing director David Ohana.
According to Mr Ohana, business practices in both Tanzania and the DRC were not conducive for growth hence the company’s decision to exit both markets.
"In every country we operate in, we comply with the rules. When people don't pay taxes, you can't compete with them," he said, adding the Tanzania business was not making money.He was speaking to Reuters on phone. He added that in three months the company will be debt free.
"We are very happy. We don't want to work for banks. We want to keep the margins for ourselves," he said.
The oil marketer, which has about 15% of market share behind Vivo Energy and Total Kenya, last year opened 12 new petrol station in Kenya and added more outlets in Rwanda and Burundi.
"Our network is increasing," he told Reuters.
KenKobil also operates in other countries in Africa including, Uganda, Zambia, Zimbabwe, Mozambique, Rwanda and Ethiopia.
Image Credit: KenolKobil