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Companies

Nock plans to lease out extra space

National Oil Corporation
A National Oil Corporation petrol station in Eldoret. FILE PHOTO | NMG 

State-owned fuel marketer National Oil (Nock) has invited private partners to lease open spaces and buildings within its petrol stations.

The oil marketer joins the race for ancillary income from fuel stations that has become an alternative for petrol stations.

The tender for the offer, which expires on October 17, restricts partners from running fuel-related businesses.

Nock said it had developed an expansive space at its Gilgil highway outlet for leasing to a major supermarket operator for three years.

“National Oil intends to have its vacant spaces in petrol stations leased to potential business entities for the purpose of running non-fuel businesses which include shops, car washes, tyre centres, service centres and restaurants where applicable,” reads part of the tender.

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The fuel operator’s new strategy to attract additional revenue from non-fuel sources indicates a growing shift by Kenya oil marketers that have been signing joint ventures and leasing space within their outlets.

Last week, Vivo Energy and fast-food operator KFC got a nod for a 50:50 joint venture that will see KFC open outlets in Vivo properties in Kenya, Uganda and Rwanda.

This comes as Total has been expanding its Mugg & Bean franchise at its fuel stations. The dealers are now adding value to their core business to attract a wider clientele and diversify revenue streams.

Nock has floated its Kangundo road (Kamulu), Kenyatta University (Thika) and Nawasco Service Station (Nakuru) that it says are open for letting by branded fast-food operators.

Its Karatina outlet has a vacant first floor space, which Nock says it intends to lease for multipurpose use while Mtito Andei’s is for retail business.

It has subdivided the Changamwe outlet for leasing out as office spaces.

Nock operates about 160 fuel outlets across Kenya with plans underway to increase their footprint to 200 by end of 2020.

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