OLA Energy has urged the government to bring down the import duty charged on the raw materials used in the manufacture of lubricants.

The oil distributor’s CEO, Mazin Binramadan, said that the high import duty makes its products uncompetitive in Africa. Kenya charges 10% on raw materials used in making lubricants.

According to Mazin Binramadan, the company finds it difficult to export lubricants to other countries like Ethiopia, Congo, Tanzania, Malawi, Zambia, and Zimbabwe as they face stiff competition from Indian, Egyptian, and South African firms which enjoy duty-free imports and other subsidies.

He further stated that, if base oils and additives were duty-free, Kenya would become competitive in the domestic market and it would reduce cases of smuggling of products into the country.

The CEO’s statements was further supported by OLA Energy Kenya’s Managing Director Millicent Onyonyi.

“While we appreciate the Government’s effort in streamlining the energy sector – petroleum industry, investment in additional capacity at Kenya Pipeline Company, and eliminating illegal Liquid Petroleum Gas refillers through policy reforms, we are calling upon the Government to partner with the industry to eliminate bottlenecks affecting the lubricants segment with a view of making our products more competitive in the region and globally.” the MD noted.

Ola energy was previously referred to as OiLibya before it rebranded.


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