Vivo Energy Kenya retains market leadership amid COVID-19 pandemic


From right - Sandra Mutua, Vivo Energy Kenya and Managing Director- Peter Murungi Vivo Energy ...
From right - Sandra Mutua, Vivo Energy Kenya and Managing Director- Peter Murungi Vivo Energy Kenya engage recruit a customer onto Shell Club, during the launch of Shell Sabaki station

Vivo Energy Kenya, the company that distributes and markets Shell-branded fuels and lubricants in the country has maintained its market leadership, latest data shows.

Also Read: Vivo Energy gets green light to acquire fast food chain KFC

According to the report from Petroleum Industry East Africa (PIEA), Vivo Energy Kenya grew its overall market share (including exports) to 18.5% in quarter III, 2020 compared to quarter II and quarter I, 2020 recording 16.92% and 14.86% respectively.

“This year has been very challenging for the business environment but we’ve been very deliberate and optimistic in actualising our consumer-centric recovery plan. The improvements we have made this quarter are glimpses of deliberate COVID-19 initiatives we developed and invested in. We believe that our solid recovery plan coupled with agility and positive business environment mindset will enable us to yield even better results going forward,” said Peter Murungi, the Vivo Energy Kenya MD.

Total Kenya took the second position with a 1.43% marginal growth, closing at an overall market share of 15.01% while Rubis Energy emerging third, recording at a market share of 9.01%.

Notwithstanding the difficult operating environment, amplified by the Coronavirus pandemic, Vivo Energy increased its Kenya petroleum market share up by 2.38% to 24.6% to emerge the largest petroleum dealer, followed by Total Kenya who reported a growth of 2.05% to 18.81%.

Rubis Energy took the third position recording 9.01%.

The report further indicates Vivo Energy leading in petroleum retail business with a marginal gain of 32.1% for the period under review, compared to 31.4% for quarter II, 2020.

Sources from the company attributed its improved performance to its huge network footprint and a strategic customer-focused recovery plan it continues to implement during this pandemic year.

For the civil aviation business, Rubis Energy remains the market leader but experienced a drop of 4.7% to 51.6%.

Also Read: Shell owner acquires stake in Engen Petroleum

Vivo Energy declined to reveal the details of its recovery plan. Our sources established though that the organisation, in collaboration with government, produced and helped to distribute over 700,000 bottles of sanitisers.

The company also ran a Pamoja Milele campaign alongside Karibu Sana campaign that interacted directly with customers, from May to November 2020.

The company also invested heavily in network expansion program, especially during the post-COVID lockdown season.

As at December 2019, Kenya had over 3,092 registered with projections of close 2021 with 3,140.

The top oil marketing companies cater for 26% of stations but account for 72% of the volumes sold. Independent oil companies control 68% of stations but only control 28% of the sales volumes.

The report points to growth in the petroleum retail business in the quarter under review, registering a 52.6% increase up from 47.9% during quarter II, 2020.

Other top industry consumers include resellers who emerged second, albeit it recorded a marginal loss of 23.9% down from 29.4% it recorded in the previous quarter, this year.

Other industry consumers such as Civil Aviation, Transport and Communication, Manufacturing, Building and Construction, Agriculture, other commercial sectors, Energy production, Mining and other Natural services, Tourism and Military were adversely impacted due to the COVID-19 pandemic.

Kenya’s economy has been hit hard by COVID-19, severely affecting industry developments, job creation and retentions.

The economy has been exposed through the dampening effects on the domestic activity of the containment measures and behavioural responses and trade and travel disruption.

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