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Market News

National Oil selling Sh566m properties

National Oil
National Oil has earmarked a number of stations for sale. FILE PHOTO | NMG 

Stated-owned National Oil Corporation of Kenya has put up its Sh566 million properties for sale with rivals expected to bid.

The cash-strapped oil marketer is offering retail stations and prime land weeks after it emerged it is operating at the mercy of bank overdrafts and facilities from commercial lenders. “National Oil Corporation of Kenya invites sealed tenders from eligible candidates to purchase National Oil assets and parcel of land,” it said in a tender notice on its website. “The assets are sold on “as is, where is” basis.”

Properties up for sale include two houses — Kunde Road Residential House and Thompson Estate in Lavington Nairobi —and land in Embakasi, Nakuru and Nyahururu.

The petrol stations include Tigoni Service Station along Limuru Road in Kiambu, Hunters Service Station in Makueni County, Londiani Service Station in Londiani Town Kericho County, Sagana Service Station in Sagana Town Kirinyaga County and Bondeni Service Station in Nakuru Town.

The firm valued the properties at Sh566 million. The announcement comes as a blow for the marketer, which earlier announced it plans to open 185 new retail stations across the country over the next three years as part of its turnaround strategy.

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Under the ambitious plan National Oil planned to expand its retail footprint to double market share to 10 percent two and half years from last year. “The first area of focus is growing our retail station footprint from the current 115 stations to 300 stations primarily through partnerships with Kenyans under a franchising model," former National Oil chief executive MaryJane Mwangi who quit last month said.

Ms Mwangi was replaced by James Nyamongo and subsequently George Kubai as the acting CEO. She had held the post since July 2016 following the acrimonious exit of Sumayya Hassan-Athmani in July 2016.

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