Dar es Salaam based billionaire Ally Edha Awadh, 37, is on course to become the newest player in Kenya’s big oil with the planned acquisition of all petroleum stations owned by Hashi Energy.
The development follows Competition Authority of Kenya (CAK) to grant approval to Lake Oil Limited owned by Ally, to proceed with the acquisition deal for an undisclosed amount.
The competition watchdog said on Friday that it had cleared the acquisition of the retail business of Hashi Energy by Lake Oil, which largely markets cooking gas but has a marginal market share even in the retail gas subsector.
“It is notified for general information that the Competition Authority of Kenya has authorized the proposed acquisition of the retail petroleum business of Hashi Energy Limited by Lake Oil Limited,” said Wang’ombe Kariuki Director General CAK in a gazette notice Friday.
The flamboyant businessman known for the lavish parties he throws in Dar is listed by Forbes among the 10 youngest richest people in Africa. At the time of the listing in by Forbes in 2014, Lake Oil had revenues of Sh60 billion.
Hashi is one of the largest oil marketing companies not just in Kenya but the region. It locally the number five oil marketer with a marker share of 6.3 per cent and ranks ahead of oil majors such as Oil Libya and state owned National Oil Corporation (NOCK). This is according to data from the industry lobby Petroleum Institute of East Africa.
The firm is the number two marketer of Liquefied Petroleum Gas – cooking gas – with a market share of 22.2 per cent, behind Total Kenya, the LPG market leader with a share of 23.9 per cent.
Lake Oil will assume ownership of Hashi Energy’s retail outlets when the transaction is concluded.
Other than the retail petroleum business, Hashi Energy is huge in other segments of the petroleum industry, including storage, where it has invested in of 240 million litre storage facilities across the region through which it supplies its own outlets as well as sells to other retailers.
The facilities depots are located in Kenya, Tanzania and The DRC.
“To support our supply chain quickly and efficiently, we have setup depot stations across the region; spanning from Sudan to Kenya and all the way down to Tanzania,” says Hashi Energy.
“We ensure that our partners, clients and retail outlets are always wet.”
According to Hashi Energy, the oil marketer was founded by Mr. Ahmed Hashi Adan in 1991 as a distributor of Kerosene in Mombasa and distributing to Rwanda and DRC markets. Hashi Energy later acquired depots in Eldoret and Kisumu and used these facilities to supply Kerosene to the western Kenyan market and to export to DRC, Rwanda and Burundi.
“Over the years he (Ahmed Hashi) has seen the company grow to become a major player in the oil business supplying over 240 million litres of petroleum products annually to the East and Central African region,” said the firm.