Vivo Energy tightened its grip on Kenya’s
petroleum industry last year as multi-nationals continued to dominate the
market, riding on their infrastructure capacity and financial
muscles.
This, even as rivals, including local
Oil Marketing Companies (OMCs) built strength in a recovering economy.
Industry data, quarter one 2026, by
the Petroleum Institute of East Africa (PIEA) shows Vivo, the local Shell products distributor maintained its position as the country’s largest oil firm in 2025
with a 14.7 per cent overall market share.
The firm continues to lead a tightly contested market dominated by a handful
of major players, even as competitive pressures begin to reshape the sector.
Rubis Energy ranked second with 11.21
per cent, followed closely by TotalEnergies at
11.0 per cent.
The trio remains firmly in control of Kenya’s downstream petroleum market,
although their combined dominance is showing signs of slight compression as
smaller firms expand.
Second-tier players are also asserting themselves. Stabex International held fourth position with a
five per cent per cent share, while Be Energy
followed at 3.7 per cent.
OLA Energy Kenya captured three per
cent with Hass Petroleum and Galana Energies each posting 2.9 per cent.
“Emerging players gaining marginal ground indicates rising competition and
competitive advantage driven by scale, supply chain and network expansion,”
PIEA says in its quarterly report.
Retail footprint remains the single most important determinant of market
share. Firms with extensive station networks and strong inland distribution
systems continue to outperform smaller competitors constrained by limited
reach.
In volume terms, the gap between the leaders and the rest of the market
remains significant.
Vivo, Rubis and TotalEnergies continue to leverage economies of scale,
allowing them to optimise logistics, manage costs and maintain consistent
product availability across the country.
Vivo energy accounted for 19.6 per cent of industry sales followed by Rubis
(13.8 per cent) and Total (13.8 per cent).
The competitive jostling comes against the backdrop of a strong recovery in
petroleum demand where total fuel consumption rose by 10.7 per cent in 2025 to
6.55 million cubic metres, up from 5.92 million cubic metres in 2024.
The rebound marks a turnaround from the previous year when high pump prices
dampened consumption.
PIEA attributes the recovery to improved macroeconomic conditions, including
stable inflation averaging 4.07 per cent, a relatively steady shilling at Sh129
to the dollar, and GDP growth of about 4.9 per cent.
These factors supported household purchasing power, boosted mobility and
lifted industrial activity—key drivers of fuel demand.
Lower pump prices also played a role. Petrol prices eased from about Sh198
per litre to Sh176, encouraging higher consumption among both households and
businesses.
Petrol and diesel remained the backbone of Kenya’s petroleum market, with
demand rising by 11.4 per cent and 9.6 per cent respectively.
The increase reflects growing vehicle ownership, rising freight movement and
sustained economic activity in key sectors.
Transport and logistics, in particular, continued to underpin demand growth,
highlighting the economy’s reliance on road-based mobility.
Beyond transport fuels, shifting consumption patterns are emerging. Fuel oil
recorded the fastest growth, surging by 65.2 per cent, driven largely by
manufacturing demand and its use in power generation as a backup energy source.
This trend underscores the increasing role of petroleum products in
supporting industrial resilience, especially amid intermittent power supply
challenges.
However, the manufacturing sector’s overall share of petroleum consumption
edged down to 0.95 per cent, suggesting improvements in energy efficiency, fuel
substitution or persistent cost pressures limiting expansion.
In contrast, aviation lagged behind. Jet fuel consumption declined by 4.2
per cent, reflecting a slower recovery in the sector.
Industry players point to airline cost pressures, route optimisation and
uneven global travel demand as key factors behind the dip.
Kenya Airways chairman Kiprono Kittony
has since urged airlines to adopt fuel hedging strategies to manage price
volatility, noting that stable fuel supply remains critical for operational
planning.
“We must hedge and we must ensure that we have sufficient
products to keep our routines going,” he said, even as he affirmed Kenya Airways’
operational stability.
“We have made sufficient plans to make sure that our planes are in the
air. We are currently holding 45 days of supply and if necessary, we will hold even
a larger supply,” he said.
