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Kenya

Kenol acquires assets in Uganda

NAIROBI, Kenya Jan 25 – Oil marketer KenolKobil says it has acquired all the assets of Phoenix Petroleum Limited of Uganda as it seeks to strengthen its position as a regional force.

The assets include three service stations in Kampala, a 1,800 metric fuel terminal as well as a three-storey building.

KenolKobil Group Managing Director Jacob Segman said in a statement the market had a strong potential for growth especially with the discovery of oil in Uganda.

"The acquisition will strengthen Kobil Uganda\’s ability to meet the growing demands," Mr Segman said.

Kobil Uganda was the group\’s first subsidiary outside Kenya and has since opened 63 outlets there.

KenolKobil will use its new high volume depot in Jinja to provide services to other marketers in the country as well as position it for oil storage once the anticipated Eldoret-Jinja-Kampala pipeline is developed.

The three-storey office building which has facilities for shops is expected to diversify its non-fuel revenue streams, which is a new focus for the group.

Mr Segman said the move would also help in easing product stock shortages and strengthen Kobil Uganda\’s business segments.

The group has been on an expansion strategy in Africa with operations in seven African markets including Tanzania, Burundi and Rwanda. Other markets include Mozambique and Zambia with prospects of moving into Zimbabwe.

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"KenolKobil will continue expanding its business presence in Uganda and East, Central and South African regions through acquisitions of similar high potential assets in both existing and new market," the MD said.

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