This archive report was first published on 7 October 2019.
Published on October 7, 2019, OLA Energy, a leading oil distributor, has called on the Kenyan government to reduce the import duty on raw materials used in the manufacture of lubricants.
The company's CEO, Mazin Binramadan, emphasized that the high import duty makes OLA Energy's products uncompetitive in Africa. Kenya currently charges a 10% duty on raw materials used in making lubricants.
According to Mazin Binramadan, the company faces stiff competition from Indian, Egyptian, and South African firms that enjoy duty-free imports and other subsidies. This makes it difficult for OLA Energy to export lubricants to countries like Ethiopia, Congo, Tanzania, Malawi, Zambia, and Zimbabwe.
OLA Energy's Managing Director, Millicent Onyonyi, further supported the CEO's statement, saying, “While we appreciate the Government’s effort in streamlining the energy sector – petroleum industry, investment in additional capacity at Kenya Pipeline Company, and eliminating illegal Liquid Petroleum Gas refillers through policy reforms, we are calling upon the Government to partner with the industry to eliminate bottlenecks affecting the lubricants segment with a view of making our products more competitive in the region and globally.”
OLA Energy was previously known as OiLibya before rebranding.
