The Kenya Petroleum Refinery Limited plant in Mombasa. PHOTO | FILE
Kenya has taken over full ownership of the Mombasa-based Kenya Petroleum Refineries Limited (KPRL) after purchasing the 50 per cent stake owned by India's Essar Energy.
The government acquired the stake for $5 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 $5 million,” said Treasury Secretary Henry Rotich on Friday at a signing ceremony between the CS and Essar Energy officials.
READ: Kenya buys out Essar, prepares for handling of Turkana oil
The Indian firm became a 50 per cent shareholder in July 2009 when it acquired shares for $7 million from Shell Petroleum Company Limited, BP Plc and Chevron Global Energy Inc.
The government had owned the other half.
Kenya takes over full ownership of Mombasa refinery