Absa, Vivo Energy Strike Deal to Fund Shell Expansion

Absa Bank Kenya and Vivo Energy Kenya have signed a financing partnership that will give eligible Shell service station dealers access to funds for upfront rent payments and construction of additional stations.

Under the agreement, eligible dealers will obtain structured financing to pay landowners rent in advance for agreed periods, allowing them to secure locations without tying up funds needed for daily operations and other investments.

“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,” the statement said.

Dealers will also be able to finance construction of additional service stations, giving existing operators an avenue to expand their businesses while supporting Vivo Energy’s wider growth plans.

Financing Targets Dealer Expansion

Vivo Energy Kenya operates approximately 350 Shell service stations across the country, making its dealer network a significant part of its fuel retail operations.

D’Souza said the financing solution would help businesses manage the substantial capital requirements associated with securing long-term leases while retaining liquidity for their operations and expansion.

The partnership comes as Vivo Energy Kenya seeks to grow its operations and expand the Shell brand in the Kenyan market.

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Vivo Energy Kenya Managing Director Peter Murungi said the company had begun a financial partnership with Absa as part of its growth agenda.

“As the company continues its growth agenda, it is bringing Absa Bank Kenya on board as a financial partner providing easier access to financing for investment and business development to Vivo Energy Kenya’s dealers and investors,” Murungi said.

He said the arrangement would give dealers and investors easier access to financing for business development as Vivo Energy continues expanding its presence in Kenya.

Vivo Energy Eyes Further Growth

Vivo Energy Kenya said the financing partnership forms part of its broader growth strategy as it continues expanding the Shell brand and strengthening its network of dealers and investors.

The company distributes and markets Shell products and services in Kenya through a nationwide network of approximately 350 service stations, with dealers playing a key role in its retail operations.

Murungi said bringing Absa on board would give dealers and investors another avenue to access financing as they pursue new business and investment opportunities.

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“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,” he said.

The partnership brings together Absa’s business financing solutions and Vivo Energy’s dealer network, with both companies positioning the arrangement as a way of supporting investment and business development within Kenya’s fuel retail sector.

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Director of Business Banking at Absa Bank Kenya Renato D’Souza and Managing Director of Vivo Energy Kenya Peter Murungi. Photo/ Courtersy