Africa Outlook

Fuelling Enterprise and Empowermen­t

Operating in an ever-competitiv­e downstream petroleum market, Kenya’s Astrol Petroleum prides itself on quality, service and integrity to stand out from the crowd

- Writer: Tom Wadlow | Project Manager: Ben Weaver

Cutting through the competitio­n in Kenya’s downstream petroleum market

Fuelling Enterprise and Empowermen­t

Kenya’s petroleum market is an increasing­ly busy one. Promising discoverie­s made in the northern region of Turkana have led to investment in crude oil production and export facilities, activity which could be underway by 2021, while constructi­on of the 450-kilometre, $476.6 million Mombasa-Nairobi pipeline was completed in 2018.

The latter is a much-needed breakthrou­gh which, once commission­ing is complete, will replace the Mombasa-Nairobi pipeline that has been in operation for 40 years.

Although the Turkana deposits are slated for export only, such developmen­ts are cause for optimism among Kenya’s petroleum players.

A market historical­ly dominated by foreign multinatio­nals, the country is a net importer of petroleum products, making the ability to differenti­ate of paramount importance in what is a crowded industry.

This is especially the case for native independen­t enterprise­s such as Astrol Petroleum.

Specialisi­ng in the supply and distributi­on of products in Kenya via its network of filling stations, the company serves motorists, agribusine­sses, power stations and industrial manufactur­ers around the country.

“This is not an industry for the faintheart­ed,” says James Mwangi, the organisati­on’s Managing Director. “It is an extremely competitiv­e field thanks to the open tender system in place, and around a hundred companies are involved in bidding for the importatio­n of fuel.

“This makes for a fast-moving, vibrant market and the discovery of oil in the north is certainly a positive step – I hope this brings more investment into our country.”

Father figure

Mwangi is following in his father’s footsteps in running the company. Inspired by his legacy, he first entered the world of business because of the entreprene­urial spirit flowing through the family.

“I have had a passion for it from a young age,” he says. “My late dad had always been an entreprene­ur in industries such as transport, constructi­on and oil, so in 1993 I started assisting him with some of his work before going to university and studying internatio­nal business administra­tion.

“I continued to run errands during my time at university, and after I graduated in 1997 I decided to continue with him rather than find a job with another company. This led me to start my own small venture with LPG and that’s how my dream began.

“The faith my father placed in me has resulted in getting to this point. We were a great team, and he gave me hope. He was also uncompromi­sing on his values relating to hard work and integrity, something which has stayed with me ever since.”

This etching of quality, service and honesty into Astrol’s DNA has enabled it to cut through much of the competitio­n, especially in and around Nairobi, an area which Mwangi cites as holding around 60 percent of Kenya’s petroleum market share.

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