Sumayya Hassan-Athmani, CEO National Oil Corporation of Kenya. PHOTO | FILE
National Oil has expanded its footprint in the country with nine new petrol stations as it eyes a bigger market share.
The oil marketer, which is owned by the State, has grown its stations to 102.
Seven stations were opened through franchises while two were constructed at an undisclosed cost.
National Oil, which was last year ranked sixth in market share at 5.3 per cent, said it is opting for franchise model to fuel its expansion drive at a lower cost.
“The cost of purchasing land for new station developments has become prohibitive. Our focus right now is on franchising as the least cost option,” the CEO, Sumayya Athmani, said in a statement.
A wider footprint is critical to driving sales of products like diesel, petrol and kerosene. The new stations are in Ngong, Gilgil, Chogoria, Kianyaga, Isinya, Kenyatta University, Karatina, Nyeri and Machakos junction.
Monthly caps have tamed price wars among the fuel companies, making market presence and strategic locations key to winning customers who don’t have to seek bargains at various outlets.
The oil marketers’ profit margins are capped at Sh7 a litre for wholesale and Sh3.89 for retail as set by the Energy Regulatory Commission.
The energy sector regulator started controlling fuel prices in December 2010.
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