NAIROBI, Kenya, Oct 8 – Oil marketing firm KenolKobil has assumed effective control of its new subsidiary in Burundi, the top management has said.
Group Mergers and Acquisitions Regional Support Manager Patrick Kondo said on Thursday that Kobil Burundi S.A had now commenced product sales in the country with the aim of distributing them and growing its market share to 10 percent in the next one year.
“This is will be done using its newly acquired retail outlets through the re-seller segment to independent service stations and in the commercial sector,” he said in a statement to newsrooms.
The takeover followed the signing of the Sales Purchase Agreement in August to acquire Oil Burundi S.A which was previously owned by Engen International Holdings (Mauritius).
Mr Kondo said the subsidiary is also focused on expanding its network in the retail market and is already prospecting for opportunities to invest in so as to increase its impact and visibility.
“KenolKobil is confident that the atmosphere in Burundi is ripe for new investment and it will coordinate with all stakeholders to enhance the growth of this subsidiary through organic expansion and strategic acquisitions,” he added.
The manager pointed out that this strategy had worked well in Rwanda where the company has grown from one service station to 43, which has enabled them to control a market share of over 35 percent.
Kobil Burundi S.A becomes the seventh member in the KenolKobil Group of companies even as it continues with its plans to extend its footprint into Southern Africa region.
The “Move South Strategy” recently saw them sign an agreement for takeover of Kobil Zimbabwe, which is due to start its operations soon.