The profile of petroleum brands in Kenya has changed significantly over the years and still continues to do so. This due in part to the mergers and acquisitions that have gone on between various multinational oil companies, as well as corporate asset restructuring which almost always leaves an impact on their Kenyan affiliates.
In the 1970s, Shell, BP, Caltex, Esso, Total, Mobil and Agip collectively referred to as the 7 sisters sometimes, were the seven multinational companies which had a strong presence in Kenya. Also present although not to a large extent, was the local retailer called Kenol, principally owned by Sir Reggie Alexander. Kenol, got its prodcuts from Caltex.
Today of the seven multinational companies, only Total remains in Kenya with all the resources and technological might of a fully integrated global company. It can be argued that Total has a special affinity and resilience for Africa and will most likely be around for many more years to come.
Shell is also present, but only as a brand licensed to Vivo Energy which acquired all of Shell’s assets in Africa.
The changes in notable brands started happening in the early stages of the 1980s, at the time when President Moi, settling into power. It also coincided with the USA/Iran conflict which led to the price of oil escalating from $11 to a high of $35 per barrel in a matter of months. The global economic recession that resulted, also affected Kenya a great deal.
The government’s hesitation to increase the local prices, created a situation where the oil companies were reluctant to import oil. As a result, the government arrived at a decision to form the National Oil Corporation of Kenya (NOCK) whose mandate was to import 30% of the petroleum requirements of Kenya.
The first victim of the USA/Iran Conflict, was Kenol as it went into receivership in 1980 and stopped business. Mobil also withdrew from Kenya. An Israeli called Gadi Zevi (who has been linked to HZ Construction and Yaya Center) along with highly placed political associates, saw it as an opportunity and capitalized. Gadi purchased Kenol out of receivership in order to partner with NOCK in the importation of the 30% statutory requirements. By 1982, Kenol was already supplying nearly all government accounts with oil.
Gadi Zevi and associates bought Mobil in 1983 and renamed it Kobil. They went on to register it in Delaware (USA), as the offshore supplier of the 30% imports for NOCK through Kenol. Kenol and Kobil remained separate brands under the same management until around 2007 when Kobil changed its domicile to Kenya, merging with Kenol and getting listed as Kenol-Kobil at the NSE.
The Kenol-Kobil brand might soon change as the company is set to be acquired by Rubis, a French independent company with a strong market presence in Europe. If that happens, it would mean the closure of a 38 year chapter for Kenol-Kobil.
The 1997 Asian financial Crisis which led to Oil prices dropping from $25 to $11 also saw Agip, Esso, Mobil, BP, Caltex exiting kenya due to a series of global mega-mergers and assets rationalization.
Libya Africa Investments Company (LAICO) ended up acquiring the prime Esso/Mobil retail and distribution assets under Oil-Libya brand which is currently rebranding to OLA (Oil Libya Africa). The company is allegedly owned by the Government of Libya.
