OLA Energy Kenya has announced a restructuring plan, including workforce reductions, aimed at improving profitability and increasing market share over the next five years.
The company cites challenging operating conditions and the need to reduce fixed costs as primary drivers for this decision.
Since early 2024, OLA Energy Kenya has implemented a “rescue action plan” to address its financial trajectory, focusing on sales growth and cost reduction. The restructuring is a continuation of these efforts.
“It is with deep regret that we must implement a redundancy program,” stated OLA Energy Kenya in a press release. The company emphasized that the process will be conducted with sensitivity and in full compliance with Kenyan labor laws.
OLA Energy operates over 1,200 service stations across 17 African countries, employing approximately 1,500 people directly.
According to the Energy and Petroleum Regulatory Authority (EPRA), OLA Energy Kenya held a 5.93% market share as of June 2023, ranking fourth among oil marketing companies (OMCs) in Kenya.
OLA Energy Kenya’s restructuring plan includes:
- Cost Containment: Addressing unsustainable fixed costs through operational adjustments.
- Sales Enhancement: Implementing strategies to increase sales and market penetration.
- Redundancy Program: Reducing workforce numbers in accordance with Kenyan labour laws.
“It is, therefore, with deep regrets that we need to implement a redundancy program,” a statement from the company read, adding that the process “would be managed with the utmost sensitivity and in full accordance with the laws of Kenya.”
The company’s press release stated, “Through this restructuring, we are committed to reversing the current trends and positioning OLA Energy Kenya for sustainable growth.”
Market Share Context
| Rank | Company | Market Share (%) |
| 1 | Vivo Energy Kenya Limited | 22.24 |
| 2 | Rubis Energy Kenya Plc | 15.56 |
| 3 | Total Energies Marketing Kenya Plc | 15.06 |
| 4 | OLA Energy Kenya | 5.93 |
| 5 | Be Energy Limited | 4.43 |
EPRA’s statistics for the fiscal year ending June 2023
OLA Energy Kenya is among the 140 registered OMCs in Kenya, marketing petroleum products such as diesel, petrol, and kerosene.
