Kenya’s government will hand over 100 fuel stations owned by the state-owned National Oil Corporation of Kenya (National Oil) to a private investor.
The move is part of a restructuring process that will see the state-owned company split into three subsidiaries under one holding company, Business Daily newspaper reported.
Although the government will hold two subsidiaries, it will allow the downstream market entity controlling the fuel stations to be operated profitably by a private investor.
The profits will be split with the investor, who will be sourced from licensed oil marketers locally and abroad, the report said.
The current liabilities of National Oil exceeded current assets by 6.3 billion Kenyan shillings as of June 2021, leaving it “technically insolvent".
(Writing by P Deol; Editing by Anoop Menon)
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