Energy products and services retailer OLA Energy has announced the commencement of a strategic business restructuring process for its Kenyan subsidiary aimed at significantly enhancing its profitability and market share in the country over the next five years, which will result in mass job losses.
According to its website, OLA Energy employs more than 1,500 people, with its operations generating 20,000 indirect jobs.
The company, in a press release on Wednesday, March 12, said that the planned restructuring will support an aggressive sales enhancement and operating costs containment program designed to reinforce its position as a major retailer of energy solutions.
“During the past year, OLA Energy Kenya initiated a rescue action plan with several initiatives to turn around the trajectory the Company was taking, including increasing sales and reducing costs,” reads part of the company’s formal notification.
“Through this restructuring, we are committed to reversing the current trends and positioning OLA Energy Kenya for sustainable growth.”
Also Read: Mass Layoffs as CMC Motors Shuts Down in Kenya After 40 Years
OLA Energy Kenya’s redundancies
At the same time, OLA Energy said that its Kenyan subsidiary is finding it difficult to sustain its current fixed costs due to the foregoing challenges, adding that it needs to implement a redundancy program.
The redundancy process will be managed with the utmost sensitivity and in full accordance with the laws of Kenya.
OLA Energy is one of Africa’s leading retail companies, with more than 1,300 service stations visited by over 500,000 customers per day in 17 countries.
It operates 60 fuel terminals and serves over 54 airports across the African continent, including Jomo Kenyatta International Airport (JKIA), in Nairobi, Kenya.
The notice by OLA Energy also comes during a period of mixed fortunes for businesses operating in Kenya, marked by economic uncertainties, shifting consumer trends, and a challenging regulatory environment.
Several companies, local and international, have made the tough decision to exit the Kenyan market, shut down operations entirely or announce mass redundancies.
The Energy products and services retailer was among the 140 registered Oil-Marketing Companies (OMCs) as of June 2024, according to the Energy Regulatory and Petroleum Authority (EPRA).
These companies market petroleum products including Diesel, Petrol and Dual-Purpose Kerosene.
Also Read: EPRA Lists 11 Petrol Stations Selling Substandard Fuel
In its statistics report for the Financial Year ending June 30, 2024, EPRA ranked OLA Energy Kenya as the fourth OMC in Kenya in terms of market share, with a market share of 5.93%, having sold 324,154.00 m³ in local sales of imported products as of June 2023.
Market share
The latest market report also showed that Vivo Energy Kenya Limited dominated the oil marketing sector with a 22.24% market share, having recorded 1.2 million cubic meters (m³) in local sales of imported products during the same period.
Rubis Energy Kenya Plc followed closely behind at second, with a sales volume of 850,194.85 m³, accounting for 15.56%.
On its part, Total Energies Marketing Kenya Plc ranked third, boasting 822,808.79 m³ and a 15.06% share.
Be Energy Limited ranked fifth among the top OMCs in Kenya, reporting a local sales volume of 241,791.22 m³, which accounted for 4.43% of the market share.
Follow our WhatsApp Channel and join our WhatsApp Group for real-time news updates
