Revenues from Rubies Increased to Sh132 billion Last Year

Last year, French oil multinational Rubis generated Sh132 billion in revenue from its Kenyan operation, recording the highest sales growth among the top three oil majors in the country.

According to financial disclosures, this represents a 44 percent increase from the Sh91.7 billion made two years prior, despite fierce competition from Vivo Energy and rival Total Energies Marketing Kenya.

Vivo Energy’s revenue increased by 38% to Sh221 billion last year, while Total Energies’ revenue increased by 28% from 2021 to Sh141.34 billion.

In the race to increase sales in the largest economy in East Africa, the three majors that control more than half of the Kenyan fuel market are on an aggressive expansion spree.

“Revenue generated in Kenya amounted to €996 million as of December 31, 2022. In Kenya, network sales are up 39 percent in 2022 and 28 percent overall in East Africa with gross margins doubling,” Rubis says in its financial disclosures for the year ended December.

The three dealers have been aggressively expanding over the past few years, primarily in Nairobi and along major highways.

In February, Total Energies opened its 232nd gas station, intensifying competition with Vivo Energy, which had 286 stations at the end of the previous year.

The amount of fuel that Rubis and Total Energies sold in the Kenyan market last year was kept a secret. While this was going on, Vivo Energy reported that it sold 1.49 billion litres of fuel in the time period, an 8.7% increase from 1.37 billion litres in 2021.

While Vivo Energy and Total Energies only generate revenue from the sale of fuel, Rubis generates revenue from both fuel and lubricants.

With a share of 10.02 percent or 574.93 million litres based on sales volumes for the previous year, Rubis is Kenya’s third-largest oil marketer, trailing Total Energies with 17 percent of 992.46 million litres during the same period.

According to official consumption data from the Energy and Petroleum Regulatory Authority, Vivo Energies is the largest marketer in Kenya, controlling almost a quarter of the market (23.83 percent), or 1.367 billion litres.