Government takes over full ownership of Mombasa refinery

The Kenya Petroleum Refinery Limited plant in Mombasa. PHOTO | FILE  

By BRIAN NGUGI, bnjoroge@ke.nationmedia.com

In Summary

• The government acquired the stake for Sh500 million bringing its total stake to 100 per cent in a move that is expected to pave the way for the plant's revival.

The State has taken over full ownership of the Mombasa-based Kenya Petroleum Refineries after purchasing the 50 per cent stake owned by India's Essar Energy.

The government acquired the stake for Sh500 million, bringing its total stake to 100 per cent in a move that is expected to pave the way for the plant's revival.

“The decision by Essar Energy to sell their stake in the company presented an opportunity which the government of Kenya decided to avail itself of. To this end the government of Kenya negotiated the terms of the Essar exit and the acquisition of the Essar shares in KPRL for a consideration of $5million (Sh500 million),” said Treasury Secretary Henry Rotich on Friday at a signing ceremony between the CS and Essar Energy officials.

READ: Govt in plans to convert Mombasa refinery into storage plant

The Indian firm became a 50 per cent shareholder in July 2009 when it acquired shares for Sh710 million ($7 million) from Shell Petroleum Company Limited, BP PLc and Chevron Global Energy Inc.

The government had owned the other half.