Kenol has concluded an agreement to purchase a 100% interest of the issued share capital of Jovenna Zambia Limited (JZL), a petroleum marketing company incorporated in Zambia, with its head office in Lusaka. JZL has been operating in Zambia for years, where it has established a strong brand.

Currently, JZL has depot facilities in Lusaka and Ndola, and has a network of nine service stations in Lusaka, Ndola, Kitwe and other major centres. JZL has all the licences to import and export, store, trade, and distribute all petroleum products in Zambia.

The acquisition is consistent with Kenol's strategy of becoming a major regional player in the petroleum distribution business. This is Kenol's third business acquisition outside Kenya, and provides a platform for future entry into Angola, Democratic Republic of Congo, Mozambique and Zimbabwe. It creates further opportunities for Kenol's recently established Trading Desk, and reiterates the company's presence as a regional force in the petroleum industry. The move also provides Kenyan nationals with the opportunity to establish themselves as competent managers in foreign countries.

The petroleum market in Zambia is an organised one, with a stable price structure. BP is the market leader in the country. Other multi-national oil companies operating in Zambia include Shell, Total, Caltex and Agip.

Kenol intends to replicate its success formula which has proved effective in Uganda and Tanzania. Kenol will conduct its business under the brand name of Kobil, upgrade its depot facilities and expand its chain of outlets. Kenyan nationals will be sent out to help manage the new acquisition, reporting directly to the Nairobi head office.

This acquisition reinforces Kenol's commitment to East and Southern Africa. Kenol is now a force to reckon with in this region. With this comes the ability to deal more confidently and effectively with our suppliers and providers of goods and services. Kenol management believes that this is yet another positive move towards adding value for Kenyans, the Company, the shareholders, and its employees.

Full operations in the country are expected to commence by March 2002