Energy retailer OLA Energy has announced a major business restructuring of its Kenyan subsidiary, a move aimed at boosting profitability and expanding its market share over the next five years. However, the overhaul will come at a cost, with the company set to lay off a significant number of employees.
According to its official website, OLA Energy directly employs over 1,500 people and generates an estimated 20,000 indirect jobs.
In a press statement released on Wednesday, March 12, the company explained that the restructuring is part of a broader strategy to strengthen its position as a leading provider of energy solutions by increasing sales and reducing operational costs.
“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,” the statement read in part.
“Through this restructuring, we are committed to reversing the current trends and positioning OLA Energy Kenya for sustainable growth.”
The company also cited rising fixed costs as a key reason behind the decision to downsize its workforce. It assured that the redundancy process would be handled with “the utmost sensitivity and in full accordance with the laws of Kenya.”
OLA Energy operates across 17 African countries, with a network of over 1,300 service stations serving more than 500,000 customers daily. The company also manages 60 fuel terminals and supplies major airports, including Jomo Kenyatta International Airport (JKIA) in Nairobi.
The restructuring announcement comes at a time when businesses in Kenya are facing mixed economic fortunes, with several firms either shutting down or scaling back operations due to economic uncertainties, changing consumer trends, and regulatory challenges.
According to the Energy and Petroleum Regulatory Authority (EPRA), OLA Energy was one of 140 registered Oil Marketing Companies (OMCs) in Kenya as of June 2024. These firms are licensed to market petroleum products such as petrol, diesel, and kerosene.
EPRA’s latest market report ranked OLA Energy Kenya as the fourth-largest oil marketer in the country, holding a 5.93 percent market share. The company sold 324,154 cubic meters (m³) of imported petroleum products in local sales as of June 2023.
Leading the sector is Vivo Energy Kenya Limited, which commands a 22.24 percent market share with 1.2 million m³ in sales. It is followed by Rubis Energy Kenya Plc at 15.56 percent (850,194.85 m³), while Total Energies Marketing Kenya Plc holds the third position with 15.06 percent (822,808.79 m³).
Be Energy Limited rounds off the top five, reporting a 4.43 percent market share with 241,791.22 m³ in local sales.
With this restructuring, OLA Energy aims to remain competitive in an evolving market, even as concerns grow over the impact of mass layoffs on Kenya’s workforce
