Absa Bank Kenya and Vivo Energy Kenya, the distributor and marketer of Shell products in the country, have signed a financing partnership aimed at helping service-station dealers expand their businesses and secure long-term operating locations.
Under the memorandum of understanding, eligible Vivo Energy dealers will have access to tailored financing to pay landowners rent in advance for agreed periods and fund the construction of additional service-station sites.
The arrangement is intended to ease the upfront capital burden associated with securing strategic locations, allowing dealers to preserve working capital for day-to-day operations and further investment.
Vivo Energy operates about 350 Shell-branded service stations across Kenya, making the dealer network a significant part of the country’s fuel retail and mobility market.
“At Absa, we are committed to developing innovative financing solutions that address real business needs and unlock growth opportunities for our customers,” Absa Bank Kenya Business Banking Director Renato D’Souza said at the signing ceremony.
The financing is designed to give dealers greater certainty over their operating locations while maintaining liquidity for business operations and expansion, the companies said.
Vivo Energy Kenya Managing Director Peter Murungi said the partnership forms part of the company’s growth strategy and will give its dealers and investors easier access to financing for investment and business development.
“Vivo Energy Kenya has started a financial partnership journey with Absa Bank Kenya,” Murungi said, adding that the company was bringing the bank on board as a financial partner as it expands its business in Kenya.
The partnership comes as fuel retailers seek to expand their networks while managing the substantial capital requirements associated with acquiring or developing new sites.
For Absa, the agreement expands its business-financing offering to a dealer network linked to one of Kenya’s largest fuel retail brands, while Vivo Energy gains a financing partner for its dealers and prospective investors.
