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TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.
Vivo Energy sales in the Kenyan market reduced by $233 million (KSh 31.4 billion) in 2023 following the weak shilling and reduced fuel demand.
In its 2023 annual report, the multinational company revealed it earned $1,557 million (KSh 210.2 billion), down from $1,790 million (KSh 241.6 billion) in 2022.
During the period under review, Vivo Energy, which runs Shell petrol stations, sold 1.342 billion litres of fuel compared to 1.49 billion litres in the previous year.
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"The group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar," Vivo stated.
In 2023, the Kenyan shilling weakened from 123.24 units against the greenback at the start of the year to 156.63 units.
Due to the weak shilling, the fuel import cost rose as petroleum was purchased in dollars.
Last year, fuel consumption in Kenya dropped to the lowest level in five years amid high pump prices.
Data showed that petrol consumption declined to 1.01 billion litres between January and June 2023 from 1.074 billion in 2022, representing a 5% drop.
Business Daily reported that at the same, diesel consumption fell by 4% from 1.36 billion litres to 1.01 billion litres.
This came after lawmakers doubled the Value Added Tax (VAT) on petroleum from 8% to 16%.
Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke
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