Vivo Energy bags petroleum shipment deal

By Macharia Kamau

Vivo Energy Kenya has won tenders valued at Sh21.3 billion ($250 million) for delivery of four shipments of petroleum products for the months of March and April through the Open Tender System (OTS).

This is the first time in six years that the firm —previously Kenya Shell — has participated and won a tender in the OTS. The tenders for both jet A1 and diesel products totalling 220, 000 metric tonnes will meet requirements for the domestic market and neighbouring countries.

The firm, which changed corporate identity earlier this year after a acquisition by Vivo Energy last year, is on mission to rejuvenate itself after years of stagnation that saw its market share in the country decline. “This is not a mean achievement given the prevailing competitive platform. It’s a demonstration of Vivo Energy’s ambition to grow going forward,” said Polycarp Igathe, the managing director Vivo Energy.

Reignited ambition

“Winning industry tenders is proof of our reignited ambition to grow and regain market share for the Shell Brand.”

OTS is supervised by the Energy Ministry and oil marketers make bids for the delivery of oil products on behalf of the industry.

Usually, the lowest bidder gets the job. The last time Shell won a tender under the OTS was in 2007.

The firm runs the Shell brand in Kenya, under licence from Royal Dutch Shell.