Rubis filling station
French oil marketing firm Rubis has identified Kenya as one of its most challenging markets in Africa, citing significant forex losses amounting to €17 million in 2024 due to currency volatility and delayed fuel margin adjustments.
In its latest financial disclosure, the company revealed that total foreign exchange (FX) charges across its operations reached €47 million, with Nigeria also contributing significantly at €12 million.
The losses have been attributed to fluctuating exchange rates and regulatory delays affecting fuel pricing mechanisms.
“Kenya remains a particularly difficult operating environment due to persistent currency instability and delays in the adjustment of fuel margins,” Rubis stated.
The Kenyan shilling has experienced sharp depreciation against major currencies, increasing operational costs for firms that rely on imports.
Oil marketers have been particularly affected as they purchase petroleum products in U.S. dollars while selling in the local currency, making them vulnerable to forex fluctuations.
The firm is expected to engage with regulators and policymakers in search of solutions to mitigate financial strain caused by forex losses.
Kenya’s energy sector has been struggling with rising fuel prices and regulatory interventions, factors that continue to impact both local and international players in the industry.
