KenolKobil overturns expulsion bid

Kenol’s market share stood at 19.6 per cent in the first half of this year behind market leader Total which had a 31 per cent stake, according to data from the industry lobby — Petroleum Institute of East Africa (PIEA).

The firm’s exit could also pile pressure on the supply side in the near term and push up pump prices.

Soon after receiving the revocation notice, Kenol instructed its lawyers Shapley Barret & Co to take the matter to court.

The revocation of Kenol’s retail license comes after ERC wrote to the oil marketer in mid August, threatening the action for the company’s failure to comply with the law

Kenol has however maintained that it has been importing crude oil for refining at KPRL, which it accuses of refusing to process the products.

The dispute between KPRL and Kenol started in 2006 with the oil refinery seeking to raise processing fees while Kenol protests at inefficiencies and the quality of products coming from the oil refinery.

Business opportunities

The oil marketer has said that KPRL’s claims against it stand at about Sh500 million while it claims from the oil refinery over Sh5.3 billion for lost business opportunities arising from delays and non-delivery of refined products that have exposed all oil marketers.