Kenol Kobil 2016 AGM

KenolKobil had its annual shareholders meeting on May 12, at the Hilton Hotel in Nairobi. The board chairman spoke of the
company’s performance in the three years since they had lost Kshs 6.2 billion. They had thereafter embarked on
a turnaround that involved reducing costs, divesting from non-performing territories, focusing on profitable business rather than
growing their market share, paying down debt, and corporate governance moves (separating the role of Chairman & CEO role) .

Highlights

Regional Business:

Tanzania:
The company would up their short foray in Tanzania where they were losing $2 million a year. They had a
depot that was part of their venture was an expensive lease, and while fuel prices in Tanzania are set by the government,
many companies sell below that price as they don’t pay taxes. The directors said that Kenol was a responsible company
that could not and decided to close shop.

DRC:
They invested here, but did not ship product there as they were not happy. with the business climate and decided to
sell out.

Burundi is doing well despite the political turmoil there.

Dividends:

One shareholder said the dividend was too low, but the chairman said they have a consistent policy of paying 25% of
net profit as dividend, while the Group MD (GMD) said they still had to pay down a lot of debt. O ne long-term shareholder told
the meeting, that it was better for the company to be conservative with dividends, rather than aggressive, like other companies,
and come back in a few years to ask shareholders to invest more money in a right issues
Property: They have decided not to put up an office building in Haile Selassie street in downtown Nairobi for now as
the office property market is saturated.

Goodies:

Lunch box (which Hilton guards would not allow to be eaten on site), and tote bag. Some shareholders pleaded for the
company to provide them with caps and umbrellas to promote the brand.

Odd Point:

One shareholder asked why the AGM had not started with prayers. The Chairman said it would not be productive, as
they would have to have prayers for Christian, Muslim, Jewish, and traditional African religions to be fair to all shareholders
present.

Thanks

Yes, we had the debt to pay and we are almost settling it, but how much is remaining? When are we going to be debt free and have more profits hence more dividends from 25% total?
Further more the argument not to build a Tower may not be so good as later date cost to have one will be more. What I could suggest is to build a mixed Hotel-office building tower as more space for hotel rooms is required at City Center for major MICE and citizens. This is how Dubai does it and hotels line up maintaining a 80% occupancy. Kenol could invite Hyatt Hotels for lease.

@ Spike...Jinga hii!!!
MICE
Meetings
Incentives
Conferences/Convention
Exhibitions

Are you a Mouse and live in Mice infested areas? Weka Kenol Petrol wataisha!!!! I know MRats are in CBD

let's see whether this books have any effect tomorrow .spikes dreams of 8bob