What Is Your Next Business? Navigate Your Next Business In Kenya’s Lubricant Market

Kenya’s economy is the largest in East Africa, with real GDP expected to grow by 5.2 on average in 2023-2024.

Lubricant oils are the lifeblood of any growing economy like Kenya.

It is required to fulfilling different types of functions of engine or machinery.

Continued economic and industrial production growth and robust vehicle fleet expansion drive the expansion of the lubricants market in Kenya.

The country’s vehicle fleet is expanding rapidly. Around 5 million vehicles are expected to be on the roads by 2030.

The need for regular maintenance in used cars is another factor driving the consumption of lubricant oil in Kenya.

Used cars accounted for over 80% of the total number of motor vehicles used in the country in 2019.

The market is expected to grow by 3 percent and 5 percent annually.

Industry players say lubricants’ profit margins are higher than other petroleum products.

Lubricants are either sourced locally or through direct importation.

Local manufacturing of oils is concentrated in three blending plants. It is estimated that locally blended lubricants account for 80 percent of total country sales.

The lubricant industry in Kenya is divided into four sub-sector. The retail segment that markets lubricants products at petrol stations.

Resellers target vehicles, spare parts shops, and garages.

The commercial segment focuses on marketing lubricants to customers, including factories, agriculture, mining, logistics, and transport companies.

The aviation sub-sectors sell products to airlines—and marine segments.