Vivo Energy Kenya Sales Fall By KSh 31b On Reduced Fuel Demand, Weak Shilling

• Vivo Energy, which runs Shell petrol stations, sold 1.342 billion litres of fuel in 2023 compared to 1.49 billion litres in the previous year
• During the period under review, the Kenyan shilling weakened from 123.24 units against the US dollar at the start of the year to 156.63 units
• Fuel consumption in Kenya dropped to the lowest level in five years last year amid high pump prices, which soared past the KSh 200 mark

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.

"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.

Why fuel consumption dropped in Kenya

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%.

Which are the largest oil marketing companies in Kenya?

• In Kenya, there are 136 registered OMCs (oil marketing companies), each engaged in selling petroleum products, including AGO, kerosene, jet fuel, lubricants, and LPG.
• The top three OMCs in Kenya, namely Vivo Energy Kenya Limited, TotalEnergies Marketing Kenya Plc, and Rubis Energy Kenya Plc, jointly hold a commanding 50% share of the market.
• Vivo Energy Kenya bought a 74% stake in South Africa's leading petroleum products distributor Engen.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke

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Cars fuel at Shell Petrol Station.

Vivo Energy Kenya Sales Fall by KSh 31b on Reduced Fuel Demand, Weak

Vivo Energy Kenya on Twitter: "SHELL V-POWER is the only fuel product