Absa, Vivo Energy partner to finance expansion of Shell service stations in Kenya

Under the agreement, eligible Vivo Energy dealers will have access to tailored financing to enable them to make advance rent payments to landowners and finance the construction of additional service station sites.

The arrangement is expected to ease the upfront capital burden faced by fuel station operators seeking to secure long-term leases, allowing them to preserve working capital for daily operations and other investments.

Vivo Energy Kenya operates about 350 Shell service stations across the country, making the financing arrangement potentially significant for dealers seeking to expand their operations and establish new outlets.

Absa Bank Kenya Business Banking Director Renato D’souza said the facility was designed to address financing challenges faced by businesses while supporting their expansion plans.

"At Absa, we are committed to developing innovative financing solutions that address real business needs and unlock growth opportunities for our customers. This partnership with Vivo Energy Kenya and its Shell brand demonstrates our commitment to being a trusted growth partner for businesses by enabling dealers to secure long-term operating locations, strengthen their businesses, and invest confidently in the future," he said.

Vivo Energy Kenya Managing Director Peter Murungi said the partnership would support the company's expansion strategy by giving dealers and investors easier access to financing for business development.

“Vivo Energy Kenya has started a financial partnership journey with Absa Bank Kenya. This comes as the company pursues its growth agenda in the country and has successfully pushed the Shell brand and products to become a market leader,” Murungi said.

He added that bringing Absa on board as a financial partner would provide dealers and investors with greater access to financing for investment and business development.

The partnership comes as fuel retailers continue to require significant capital to secure suitable sites and develop service station infrastructure.

By financing advance lease payments and new construction, the two companies expect the facility to support the expansion of the Shell dealer network while allowing operators to retain liquidity for their core businesses.